Daily Current Affairs : 6-January-2024

In the year 2023, a concerning trend emerged in the Indian financial landscape, with Aadhaar Enabled Payment System (AePS) frauds constituting a significant portion of cyber financial scams. According to the Indian Cyber Crime Coordination Centre (I4C), these frauds accounted for 11% of the total cyber financial scams reported in the country.

AePS Overview:

AePS, or Aadhaar Enabled Payment System, is a payment service that facilitates users in accessing their Aadhaar-enabled bank accounts for various transactions. It acts as a bridge between banks and customers, allowing for secure and seamless financial transactions.

Geographical Concentration:

The epicenter of these AePS frauds was identified in the states of Bihar and Jharkhand, where a substantial number of cases were reported. Understanding the regional dynamics is crucial for devising targeted strategies to curb this rising menace.

Biometric Cloning Challenges:

One of the alarming aspects of AePS fraud is the occurrence of biometric cloning. Criminals exploit vulnerabilities in the system to create replicas of users’ biometric data, leading to unauthorized access and fraudulent transactions. Addressing this specific challenge is imperative for enhancing the security of the AePS platform.

Government Response:

In response to the surge in cyber-enabled financial frauds, the central government’s portal and the 1930 helpline witnessed an influx of over 13 lakh complaints. Recognizing the need for a robust system, the government must prioritize the resolution of these complaints and take proactive measures to prevent future occurrences.

Diverse Landscape of Cyber Financial Frauds:

The I4C analysis shed light on various categories of cyber financial frauds, ranging from sextortion and investment scams to illegal loan apps and romance scams. This diverse landscape underscores the evolving nature of cyber threats, necessitating a comprehensive approach to cybersecurity.

Social Media-Related Crimes:

In addition to AePS frauds, the analysis revealed a significant number of social media-related cybercrimes, with 1,41,056 reported cases in 2023. This emphasizes the need for heightened vigilance and preventive measures in the digital space.

Important Points:
  • AePS Fraud Statistics (2023):
    • AePS frauds constituted 11% of total cyber financial scams in India.
    • Bihar and Jharkhand emerged as hotspots for these frauds.
  • AePS Overview:
    • Aadhaar Enabled Payment System facilitates transactions through Aadhaar-enabled bank accounts.
    • Acts as a secure bridge between users and banks.
  • Biometric Cloning Challenges:
    • AePS frauds included instances of alarming biometric cloning.
    • Criminals exploit system vulnerabilities to create unauthorized biometric replicas.
  • Government Response:
    • Over 13 lakh complaints related to cyber-enabled financial frauds were reported.
    • Central government’s portal and 1930 helpline experienced a surge in complaints.
  • Diverse Landscape of Cyber Financial Frauds:
    • I4C analysis revealed various cyber financial fraud categories.
    • Categories included sextortion, investment scams, illegal loan apps, and romance scams.
  • Social Media-Related Crimes:
    • 1,41,056 reported cases of social media-related cybercrimes in 2023.
    • Highlights the need for increased vigilance and preventive measures in the digital space.
Why In News

In 2023, Aadhaar Enabled Payment System (AePS) frauds accounted for 11% of cyber financial scams originating in India, according to an analysis by the Indian Cyber Crime Coordination Centre (I4C), highlighting the growing need for enhanced cybersecurity measures in the digital financial landscape.

MCQs about AePS Fraud in India

  1. What percentage of cyber financial scams in India were attributed to Aadhaar Enabled Payment System (AePS) frauds in 2023?
    A. 5%
    B. 11%
    C. 15%
    D. 20%
    Correct Answer: B. 11%
    Explanation: AePS frauds accounted for 11% of the total cyber financial scams in India in 2023.
  2. Where did the majority of AePS frauds occur according to the analysis?
    A. Maharashtra and Gujarat
    B. Bihar and Jharkhand
    C. Tamil Nadu and Karnataka
    D. Uttar Pradesh and Rajasthan
    Correct Answer: B. Bihar and Jharkhand
    Explanation: Bihar and Jharkhand were identified as the epicenter of AePS frauds.
  3. What is the primary function of Aadhaar Enabled Payment System (AePS)?
    A. Social media platform
    B. Accessing Aadhaar-enabled bank accounts
    C. Online shopping portal
    D. Email communication
    Correct Answer: B. Accessing Aadhaar-enabled bank accounts
    Explanation: AePS facilitates users in accessing their Aadhaar-enabled bank accounts for various transactions.
  4. What diverse categories of cyber financial frauds were highlighted in the Indian Cyber Crime Coordination Centre (I4C) analysis?
    A. Only biometric cloning
    B. Investment scams and romance scams
    C. Only sextortion
    D. All of the above
    Correct Answer: D. All of the above
    Explanation: The I4C analysis revealed various categories, including sextortion, investment scams, illegal loan apps, and romance scams.

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