Aadhaar Enabled Payment System - Best Practice and Security Concern

Description :

Aadhaar Enabled Payment System (AEPS) is a payment model which allows financial transactions at PoS (Micro ATMs) via banks using the Aadhaar authentication. This payment system empowers the marginalized and excluded segments to conduct financial transactions (Credit, Debit, Remittances, Balance Enquiry, etc) through microATMs deployed by Banks in their villages. To make transactions via AEPS, customers and merchants need to link their Aadhaar card with their bank accounts.

Types of banking transactions using AEPS are as follows:

•       Balance Enquiry

•       Cash Withdrawal

•       Cash Deposit

•       Aadhaar to Aadhaar Funds Transfer

AEPS requires the following inputs from a customer for transactions:

•       IIN (Identifying the Bank to which the customer is associated)

•       Aadhaar Number

•       Fingerprint

How it Works - Customer Side

Transaction via AEPS involves the following process:

•       The customer provides his/her Aadhaar number and the fingerprint

impression at the microATM device.

•       The customer provides the details of financial transaction to be done.

•       The digitally signed and encrypted data packets are transferred via

Bank Switch to NPCI to UIDAI.

•       UIDAI processes the authentication request and communicates the outcome

in form of Yes/No.

•       If the authentication response is Yes, bank carries out the required

authorization process and advises microATM on suitable next steps.

Best Practices

•       At enterprise level, there are processes to use multifactor and

multimodal authentication to maintain security.

•       Liveness detection methods should be used to prevent spoofing attacks

to avoid the use of fake fingerprints to impersonate a legitimate user and

gain unauthorized access.

•       Physical devices used for transaction (micro ATMs) must be tamper

resistant to avoid unauthorized use.

•       Bank accounts should be monitored and unauthorized transactions should

be reported immediately.

•       Do not get carried away by strangers who try to help using the

microATM.

References

CERT-In

Security of Micro ATMs (CIAD-2016-0063)

http://www.cert-in.org.in/s2cMainServlet?pageid=PUBVLNOTES02&VLCODE=CIAD-20

16-0063

Securing Biometric Devices (CIAD-2016-0074)

http://www.cert-in.org.in/s2cMainServlet?pageid=PUBVLNOTES02&VLCODE=CIAD-20

16-0074

UIDAI

https://authportal.uidai.gov.in/web/uidai/home-articles?urlTitle=aadhaar-en

abled-payments

NPCI

http://www.npci.org.in/aepsoverview.aspx

http://www.npci.org.in/documents/aepsfaqcust.pdf

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