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Customers defrauded at 4 PSBs through Aadhaar-based authentication misuse -Somesh Jha & Namrata Acharya

-Business Standard

The banks - Allahabad Bank, Bank of India, Syndicate Bank, and UCO Bank - recently reported the matter to the Union government

New Delhi/ Kolkata:
The staff of four public sector banks (PSBs) has been alleged to have salted away depositors’ money by misusing the latter’s Aadhaar-based authentication.

The banks — Allahabad Bank, Bank of India, Syndicate Bank, and UCO Bank – recently reported the matter to the Union government, complaining that Rs 14.2 million had been fraudulently withdrawn using customers’ Aadhaar numbers.
“According to the data reported by PSBs, there have been incidents of money being fraudulently withdrawn from bank accounts using the customers’ Aadhaar numbers in a few banks,” Minister of State for Finance Shiv Pratap Shukla told the Rajya Sabha in a written statement on Tuesday.

This has come when the Supreme Court is hearing petitions challenging the constitutional validity of the Aadhaar Act, which makes the 12-digit biometric identifier mandatory for availing of government services.

In two cases related to the Bank of India, “wrongful or fraudulent mapping of Aadhaar numbers” had been done by its business correspondents. An amount of Rs 13.7 million was withdrawn from the accounts of customers.

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