Central Idea

Scammers are using silicone thumbs to operate biometric POS devices and ATMs, draining users’ bank accounts.
Incidents of Aadhaar-linked fingerprint misuse and unauthorized withdrawals have been reported.

What is AePS?

	Details
What is it?	Enables online financial transactions using Aadhaar authentication, eliminating the need for OTPs and other details.
Supported transactions	Cash deposit, withdrawal, balance inquiry, and fund transfer can be done with just the bank name, Aadhaar number, and fingerprint.
Default activation	AePS may be enabled by default for most bank account holders when Aadhaar is linked to their account.
Mandatory linking for benefits and subsidies	Users seeking benefits or subsidies under Aadhaar Act schemes must link their Aadhaar number with their bank account.

Data breaches: These have been reported, although UIDAI denies breaching Aadhaar data.
Information Leak: Criminals can obtain Aadhaar numbers from photocopies and soft copies, using Aadhaar-enabled payment systems to breach user information.

Regulation: UIDAI proposes regulations to prevent sharing of Aadhaar details without redaction.
New two-factor authentication: This combines finger minutiae and image capture for fingerprint liveness.
Locking Aadhaar Online: Aadhaar can be locked using the UIDAI website or the myAadhaar app. Locking generates a 16-digit VID code needed for unlocking.
Zero Liability: Customers’ entitlement to zero liability arises if unauthorized transactions are reported to the bank within three working days.

Immediately lock Aadhaar biometric information if suspicious activity occurs.
Inform banks and authorities promptly to initiate necessary actions.
Timely reporting ensures the possibility of returning money transferred fraudulently.
Regularly check bank accounts for any suspicious activity and inform the banking institution promptly.