Page 50 - Banking Finance September 2023

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How UIDAI is using AI to tackle

payment fraud?

s more frauds involving the Aadhaar-enabled machine learning (AI/ML) that would verify fingerprints and
A Payment System (AePS) come to light, the identify spoofing attempts.

Unique Identification Authority of India (UIDAI)
has turned to artificial intelligence-based The new technology improvement, according to the UIDAI,
would employ a combination of “finger minutia and finger
systems in an effort to limit the cases, including the
image” to assess the vitality of the scanned fingerprint. “The
development of technologies based on fingerprinting and
new two-factor/layer authentication adds add-on checks to
facial recognition.
validate the genuineness (liveness) of the fingerprint, further
reducing the chances of spoofing attempts,” according to a
On July 31, Minister of State for Finance Bhagwat Karad told
UIDAI press statement.
Parliament that the UIDAI has rolled out an in-house
Artificial Intelligence/Machine Learning technology-based
What is fingerprint spoofing?
Finger Minutiae Record – Finger Image Record (FMR-FIR)
modality that can check the liveness of a fingerprint to Meanwhile, it is worth noting that as the digital age
detect the use of cloned fingerprint during the progresses, individuals become more exposed to the evil side
authentication process to prevent AePS frauds by the use of the internet. Scammers are always coming up with new
of spoofed fingerprints during Aadhaar authentication. ways to deceive people or attack innocent victims. One
approach they employ is fingerprint spoofing.
The mechanism
As we all know, the Aadhaar card has become a single
To safeguard Aadhaar, the Unique Identification Authority
source for offline/online identity verification for inhabitants
of India (UIDAI) has launched out a new two-layered of India across the country. The Aadhaar enrolment number
security method for Aadhaar-based fingerprint may be used to verify and confirm identification in a variety
authentication. The new security technique was made public of industries, including education and banking. People can
in order to reduce identity and spoofing-related fraud and also use Aadhaar to access their bank accounts or profit
safeguard citizens’ Aadhaar information. from different government schemes as a result of Aadhaar.

During the Aadhaar card validation process, the Central As a result, fraudsters are attempting to acquire Aadhaar
Government has incorporated a two-step security in order to obtain identity data from others and profit
verification mechanism driven by artificial intelligence and financially by impersonating someone else.

50 | 2023 | SEPTEMBER | BANKING FINANCE