In the Aadhaar Enabled Payment System, the Unique Identification Authority of India (UIDAI) has added a new security feature (AEPS). This feature, called Fingerprint “Liveness,” aims to stop the use of forged fingerprints to make cash withdrawals through AEPS.
New feature added to PoS machines The
According to a government official quoted by the Economic Times, AEPS Point of Sale (PoS) devices have received a software update that adds this new security function. It will now be possible for PoS to determine whether or not the fingerprint being used is that of a living individual. The official also noted in the study that fraud cases are quite uncommon (about 0.005 percent).
More than 1,507 crore financial transactions have already occurred since AEPS was activated. Consequently, there have been about 7.54 lakh fraudulent transactions in the system (as per the percentage mentioned by the officer). After several instances of AEPS usage around the nation, the new security feature was expedited and put into place.
Reports state that the fraudulent transactions involved fingerprints that were duplicated on silicon pads. These fingerprints were taken from land transaction records that were posted online by departments in charge of collecting land revenue.
Founder and CEO of EasyPay Shams Tabrez commented on this, stating that the new security feature will assist in identifying fraudulent transactions and fingerprints, improving authentication and security.
The government has 50 lakh AEPS PoS machines in the country,
“In the recent past, we have witnessed different cases of forgery and fraud, which mostly affect the residents of rural areas, as they have abused deceptive financial transactions from unknown locations,” he continued. The government has 50 lakh AEPS PoS units in the nation. As a result, they are experiencing problems and financial loss as a result of the phoney fingerprint traces. Approximately 5 million (50 lakh) AEPS PoS machines are currently in use by the government, with 35 lakh of those being active each month.
Guidelines for Banks and NBFCs The
In an effort to reduce fraud, the National Payments Corporation of India (NPCI) had previously published rules for banks and non-banking financial institutions (NBFCs) in September. In accordance with the regulations, banks were required to notify customers five days after a fraud complaint was filed.
Read More: Aadhar Card: Due to UIDAI’s major update, crores of citizens would be affected.
In the same time frame, NPCI has also requested that banks produce a thorough investigation report on the incidences. Banks will also have 10 days to make their cases, claiming that they are not responsible for the fraud.
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