Facts for Prelims (FFP)
Context: UIDAI (Unique Identification Authority of India) is employing artificial intelligence-based technology to address fraud in the Aadhaar-enabled Payment System (AePS). The technology is called Finger Minutiae Record–Finger Image Record (FMR-FIR) modality.
What is FMR-FIR?
The Finger Minutiae Record–Finger Image Record (FMR-FIR) modality is an Artificial Intelligence / Machine Learning technology used by UIDAI to prevent fraud in Aadhaar-enabled Payment System (AePS).
How does it work?
It verifies the authenticity of fingerprints during authentication by combining finger minutiae (distinct ridge characteristics) and finger images. This technology helps detect cloned fingerprints, ensuring that only real fingerprints are used for verification, thus enhancing security and preventing fraud.
In FY2023, the total number of fraud cases in the banking system was 13,530. Of this, almost 49 per cent or 6,659 cases were in the digital payment – card/internet – category.
As payment-related frauds rise, this AI-based solution aims to enhance security and curb financial crimes associated with the AePS system.