Summary:
The Department of Telecommunications (DOT) has introduced a Financial Risk Indicator (FRI) to fight telecom-based financial fraud. Since its launch in May, the AI-managed system has already helped blacklist 3-4 lakh fraud sims and is currently identifying 2,000 high-risk numbers per day. This initiative has greatly helped UPI platforms and banks to prevent scams, taking a major step to secure India’s digital finance ecosystem.
What is Financial Fraud Risk Indicator (FRI) and How Does it Work?
Financial Fraud Risk Indicator (FRI) is an AI-powered system developed by DoT to detect and flag high-risk telecom SIMs, which can be used for investment scams, job fraud and other digital financial offenses. In May 2025, FRI analyses telecom data and uses pattern recognition algorithms to identify fraudulent behaviour. Once highlighting a high-risk SIM card, the system tracks linked numbers and alert banks and payments platforms to prevent potential fraud.
Stronger Checks, Safer Transactions!
— DoT India (@DoT_India) May 21, 2025
DoT introduces Financial Fraud Risk Indicator. It will:
– Share intel to banks, UPI & financial platforms
– Help digital payment platforms in flagging risky mobile numbers during payments
– Enable faster fraud detection, prevention &… pic.twitter.com/kpDlbLh1sq
Key Achievements of the FRI System
- 3–4 Lakh SIM Cards Blacklisted: Since deployment, the system has identified and blacklisted thousands of fraud numbers in the telecom network.
- 2,000 Numbers Marked Daily: FRI uses AI-based patterns to detect new suspected sims and network connections.
- Leading UPI Integrated with Platforms and Banks: Big players like PayTM, GPay, PhonePe, HDFC Bank, PNB, and ICICI are using FRI to block suspects to block suspicious transactions.
- Low Fraud Response Time: According to DoT, FRI has reduced time-by-implementation on fraud accounts, allowing real-time intervention.
RBI & Social Media Integration for Broader Reach
In July, the Reserve Bank of India (RBI) advised all commercial and cooperative banks to integrate the FRI system. This has empowered banks:
- Fall in high-risk transactions
- Alert users about potential frauds
- Delay or block clearly marked payment
Additionally, the utility of the platform has been extended with MFilterIt, support of a fraud detection company, which uses AI-based honeypots on platforms such as Instagram, Facebook and X (previously Twitter). These bots mimic real users and interact with scam accounts, motivating fraudsters to reveal their UPI ID, barcode or mule account details.
The Bigger Picture: A Smarter, Safer Digital India
The digital intelligence platform of the DoT, under which FRI is operated, is emerging as an important infrastructure for India’s cyber security. With a real-time data exchange between telcos, banks and digital platforms, India is taking an active and collaborative approach to combat digital scams, with a real-time data exchange between telcos, banks and digital platforms.
Financial Risk Indicators are changing India’s fight against telecommunications related financial fraud. By detecting fake SIMs, working with UPI platforms and banks, and integrating social media intelligence, DOT has determined a groundwork for a real-time, AI-managed fraud detection network. As fraudsters develop, India’s defense-smarter, faster and more connected than ever.
