Fraudsters are finding new ways to exploit Aadhaar for financial scams, draining unsuspecting victims’ bank accounts and several such incidents are being reported in the media. Here’s how these scams work and the simple steps you can take to protect yourself.
In an effort to curb financial fraud and enhance financial literacy, a special programme ‘Arthsutra Samvad’ was organized at an educational institution in Delhi–NCR. This initiative is being conducted under the Reserve Bank of India’s (RBI) campaign to enhance financial literacy and awareness, aiming to spread knowledge about financial discipline, online fraud prevention, and good money management practices. The core purpose is to simplify personal finance so that people can take well-informed decisions with confidence and clarity.
India’s largest private sector Non-Banking Financial Company (NBFC), Bajaj Finance Limited, organised the event in which students enthusiastically participated. Addressing the students, Dr. Pranay Kumar, ACP of Badli, said nowadays criminals mostly misuse Aadhaar cards for fraud. When people submit their Aadhaar for hotel check-ins or photocopies, it may reach fraudsters, and since Aadhaar is linked to bank accounts, criminals can access sensitive financial details. He advised students and participants not to give Aadhaar card copies to anyone, and instead use a driving license or voter ID when needed.
The police officer stressed the importance of awareness against financial fraud and said everyone must remember the helpline number 1930, and immediately register a complaint in case of any cyber fraud. He also informed students about digital arrest scams and fake investment groups circulating on WhatsApp.
Digital arrest scams
The digital arrest scam works by fraudsters posing as law enforcement officers on video calls, where they threaten victims with false charges and coerce them into transferring large sums of money.
Indians have lost millions of dollars to digital arrests, according to Government data, with reported cases nearly tripling to 123,000 between 2022 and 2024. The scam has become so widespread that authorities launched full-page ads, radio and TV campaigns, and even issued a warning from the prime minister. To combat the fraud, officials report blocking nearly 4,000 Skype IDs and more than 83,000 WhatsApp accounts linked to the scheme.
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The department of telecommunications (DoT) has launched a caller tune campaign.
Replying to a question in Parliament, Minister of State for Home Affairs, Bandi Sanjay Kumar, furnished data of digital arrest scams and related cybercrimes reported on the National Cybercrime Reporting Portal (NCRP) in the last three years, which showed 39,925 such incidents being reported in 2022 with a total defrauded amount of Rs 91.14 crore.
People are urged not to panic when they receive such fraudulent calls. Okhla resident Rizwan Khan recalled how, a few months ago, he received a WhatsApp call from an unknown number. The caller, pretending to be a government official, claimed that Khan’s nephew had been taken into custody for a crime and would be arrested unless a large sum of money was transferred immediately. To make the threat convincing, Khan even heard someone crying for help in the background, a voice eerily similar to his nephew’s.
Sensing something amiss, he quietly asked his wife, who was also sitting in that room, to check if their nephew was at home. Moments later, she rushed back to confirm that the boy was safe and quietly studying in another room. Realising he was being targeted in a “digital arrest” scam, Khan promptly hung up the call.
Not everyone, however, manages to stay calm in such situations. Many victims give in to fear and pressure, losing their hard-earned money and stories that continue to surface regularly in the media.
Dr Sukhdeep Singh statement
Dr Sukhdeep Singh, Professor at the Institute of Economic Growth, Delhi, emphasised that financial literacy is essential for everyone, especially for rural communities and young professionals. It helps people manage savings, loans, and expenses wisely while protecting them from fraud.
He said: “Spend on current needs, but saving for the future is crucial. Girls, in particular, must acquire saving skills.” Effective literacy programmes not only empower individuals to build wealth but also contribute to the nation’s overall economic growth.
Through workshops, interactive sessions, and community discussions, the ‘Arthsutra Samvad’ programme covers topics such as the importance of savings, financial security during emergencies, responsible borrowing, and protection from common frauds—both online and offline. In addition, participants are guided to adopt financial discipline and develop the mental resilience required to face life’s economic challenges.
HDFC bank on its website gives some suggestion how to stays safe. “Any individual with a valid Aadhaar and registered mobile number can lock/unlock their biometrics. When you lock your biometrics, your Aadhaar cannot be authenticated using your fingerprint and iris data, preventing potential Aadhaar Card frauds. You can unlock your Aadhaar by following the same steps mentioned above. Note that you need to register your mobile number with Aadhaar if you wish to lock or unlock your Aadhaar.”
Lock your biometrics
You can lock your Aadhaar biometrics to disable authentication using your biometrics. You can unlock your biometrics later again whenever needed, in a few simple steps, as mentioned below.
Enter your Aadhaar number or VID, the Captcha Code and select the ‘Send OTP’ option.
Enter the OTP that you receive on your registered mobile number.
Amid a surge in bank fraud cases, users are urged to stay vigilant and avoid clicking suspicious links on WhatsApp or email. In one recent case, a pensioner lost ₹6 lakh, with the fraudster wiping his account clean within days. Victims said the recovery process is painfully slow, often discouraging them from pursuing their claims. Despite filing the complaint for days, the victim said no action has been taken yet.
While a fortunate few manage to recover their lost money, many others either fail to lodge a complaint in time or neglect to follow up on it. As a result, they are left devastated and in some cases reduced to paupers not only because of their own missteps but also due to the ruthless actions of fraudsters, according to people familiar with such incidents.
A Delhi resident, whose two family members had fallen prey to the fraudsters, said timely complaints often increase the chances of recovering lost money. In their case, they considered themselves fortunate as both relatives managed to get their money back.
