Bank Frauds with Aadhaar Biometrics: Civil Society Forum Writes To RBI Governor Seeking IT Security Audit System for Banks
IANS 16 October 2023
In the wake of multiple instances of online bank frauds through misuse of biometrics data in Aadhaar cards, a popular civil society forum here has appealed to Reserve Bank of India (RBI) governor Shaktikanta Das for the introduction of information security (IS) audit system for banks.
 
Bank Bachao Desh Bachao Manch, the said forum representing various sections of the civil society, in its communique to the RBI governor, has sought appointment of independent IS auditors for all banks.
 
According to the forum communique, the appointment of independent IS auditors to conduct in-depth investigation in all banks, who have mobile banking apps, will enable unearthing of facts so that the entire industry becomes sensitive towards the safety of customers’ deposits.
 
Instruction to be issued to all the banks not to set any such target on branch functionaries which, in turn, could trigger off adoption of malpractices to achieve the same to satisfy the authorities, as per the communique to the RBI governor, a copy of which is available with IANS.
 
The forum has also appealed to the apex bank governor to instruct all banks to investigate the operations of business correspondents to detect malpractices, if any, like substitution of biometric details of customers at the time of opening of accounts.
 
At the same time, the forum has requested the RBI governor to instruct all banks to investigate the operations of business correspondents to detect malpractices like substitution of biometric details of customers at the time of opening of accounts.
 
In the communique, the forum has argued that one of the major factors that are propelling rampant bank frauds through misuse of Aadhaar-related biometrics information is the drive initiated by various banks to onboard customers on mobile banking apps through business correspondents as well as employees.
 
This, according to the forum, has resulted in customers losing substantial amounts through frauds perpetrated by fraudsters.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Comments
sd9996848
8 months ago
Same issue regarding pg portal repeatedly sending single report from five times even after giving assurance by their call center to revert the decision of a bank fraud.
Veeresh Malik
8 months ago
One of the earliest steps to take should be physical printouts of new (and existing) mobile phone connections to be sent to the address/addresses used by the customer with the telecom providor using a documented Registered Post delivery mechanism. And then the same be repeated every year on the Date of Birth provided or Date of Incorporation, as applicable - because many of the frauds happen kind courtesy the OTP method.
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