Cyber fraud cases rise through biometric misuse, Aadhaar-linked bank accounts targeted in Gujarat

Cyber fraudsters are increasingly exploiting biometric systems and Aadhaar-linked services to siphon money from bank accounts and misappropriate government funds, with a growing number of cases reported across Gujarat and other states.

Police and cyber crime officials say recent complaints point to organised networks misusing fingerprints and cloned biometric data linked to Aadhaar cards to withdraw money, divert subsidised commodities and disable critical services such as SIM cards to avoid detection.

Biometric-linked fraud spreads across districts

Over the past two years, authorities have detected scams in the biometric-based distribution system at fair-price ration shops, where fingerprints linked to Aadhaar cards were misused to divert government food grains. More recently, similar methods have been used to target individual bank accounts.

Cases involving cloned biometric data have been reported from rural areas of Kutch and Kheda districts. In several incidents, fraudsters used thumb impressions obtained through biometric tampering to withdraw money directly from Aadhaar-linked bank accounts.

In Mandvi, Kutch, ₹10,000 was withdrawn from the account of a woman doctor using biometric authentication. Other cases in the same region involved withdrawals of ₹8 lakh from one account holder and ₹30,000 from another. Similar incidents were reported from villages including Lakhpat, Vithon and Nakhatrana, where Aadhaar-linked biometric systems were allegedly compromised.

SIM deactivation enables silent withdrawals

A newer and more concerning pattern has emerged in Ahmedabad and surrounding areas, where fraudsters are disabling Aadhaar-linked services and SIM cards before withdrawing money from bank accounts.

According to cyber crime officials, once SIM cards are deactivated, victims stop receiving transaction alerts and OTPs, allowing fraudsters to withdraw large sums before the account holder becomes aware.

In one recent case in the Nadiad area, the Aadhaar and SIM services of a hotel manager were disabled, during which ₹3.08 lakh was withdrawn from his two bank accounts. Police said the complainant had updated the mobile number linked to his Aadhaar card, but the old number remained linked to his bank accounts. When the Aadhaar card was cancelled, the old SIM services were deactivated, creating a window during which the withdrawals took place.

Organised networks misuse Aadhaar-linked fingerprints

Investigations have also uncovered organised networks involved in misappropriating government money and goods using cloned biometric data. Police revealed that a gang based in Uttar Pradesh tampered with around 1,500 Aadhaar cards across 12 states, including Gujarat, Uttar Pradesh, Madhya Pradesh, Punjab, Delhi, Tamil Nadu, Andhra Pradesh and West Bengal.

The network allegedly colluded with around 300 retailers to siphon off government food grains by manipulating ration cards and biometric authentication systems. In addition to diverting ration supplies, the gang is accused of creating fake Aadhaar cards, obtaining SIM cards using forged documents and opening bank accounts as part of a nationwide scam.

Earlier, Surat police disclosed that data of 1.27 crore ration card holders had been leaked, with around 15,000 records sold. In Vadodara, police also busted a centre providing fake biometric data for Canadian visa applications.

Traders seek halt to biometric withdrawals

In response to the rising number of cases, an organisation promoted by the Mandvi Chamber of Commerce convened a meeting and submitted representations to the Prime Minister, the Finance Minister and the Reserve Bank of India.

The organisation demanded that withdrawals from bank accounts using biometric authentication be stopped, or that safeguards be introduced to ensure no money can be withdrawn through biometric methods without the explicit consent of the customer.

Police warn against sharing Aadhaar details

Cyber crime officials say the cases indicate a clear pattern: fraudsters first obtain Aadhaar details, identify linked bank accounts and mobile numbers, and then block Aadhaar authentication and SIM services to prevent alerts.

Police said investigations focus on tracing beneficiaries of accounts used for fraud and coordinating with banks and telecom companies. However, authorities have acknowledged that organised networks involved in biometric-based cyber fraud have not yet been fully dismantled.

In view of the rising incidents, police have urged citizens not to share Aadhaar cards, biometric data or related details with anyone without proper verification.