Since paper-aadhaar is still very much accepted as a proof, just having the number is enough (in many cases) to take over someone's identity and get a new SIM issued, which you can then use for emptying the bank account.
There are also phishing scams happening with Aadhaar since it uses OTP as the authentication factor. We have OTPs as 2FA for bank transactions, and it works because the first factor is still secret (credit card number or your banking credentials). However, if your first factor is your Aadhaar number, the security goes down tremendously, since every organization under the sun is now asking your Aadhaar.
I'm tempted to wardrive Aadhaar OTPs sent over unencrypted SMS.
Since paper-aadhaar is still very much accepted as a proof, just having the number is enough (in many cases) to take over someone's identity and get a new SIM issued, which you can then use for emptying the bank account.
There are also phishing scams happening with Aadhaar since it uses OTP as the authentication factor. We have OTPs as 2FA for bank transactions, and it works because the first factor is still secret (credit card number or your banking credentials). However, if your first factor is your Aadhaar number, the security goes down tremendously, since every organization under the sun is now asking your Aadhaar.
I'm tempted to wardrive Aadhaar OTPs sent over unencrypted SMS.