In a major move to fight cyber fraud and financial crime, the Department of Telecommunications (DoT) has introduced a new tool called the Financial Fraud Risk Indicator (FRI). This is part of the Digital Intelligence Platform (DIP) and aims to provide banks and financial institutions with advance actionable intelligence to prevent fraud linked to mobile numbers.
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
What Is the Financial Fraud Risk Indicator (FRI)?
The FRI is a risk-based metric that classifies mobile numbers as Medium, High, or Very High risk for financial fraud. This classification is based on inputs from multiple sources, including
- Reports from the National Cybercrime Reporting Portal (NCRP) under the Indian Cybercrime Coordination Centre (I4C),
- Complaints on DoT’s Chakshu platform, and
- Intelligence shared by banks and fintech companies.
The FRI enables banks, NBFCs, and UPI platforms to apply extra checks and security measures when high-risk numbers are involved in financial transactions.
Why Is This Important?
Mobile numbers used in cyber frauds often have a short life span, and full verification may take time. The Digital Intelligence Unit (DIU) under DoT has been sharing the Mobile Number Revocation List (MNRL), which contains details of numbers disconnected due to reasons like
- Involvement in cybercrimes
- Failed verification
- Breaching usage limits
By using FRI, stakeholders receive early warnings and can take preventive action before fraud occurs. The classification is shared instantly across platforms through DIP for real-time intervention.
Industry Adoption: PhonePe Leads the Way
PhonePe is among the first to adopt FRI. It has already started blocking transactions linked to Very High-risk numbers and shows on-screen alerts through its PhonePe Protect feature. PhonePe reports that the FRI model is highly predictive, helping pre-empt fraud attempts effectively.
For Medium-risk numbers, the platform is working on displaying advance warnings to users before transactions proceed.
Collaborative Effort Across UPI Ecosystem
Major UPI players like PhonePe, Paytm, and Google Pay, which together handle over 90% of India’s UPI transactions, are integrating DIP alerts into their systems. Examples include
- Delaying transactions involving suspicious numbers
- Sending alerts that require additional user confirmation
- Proactive monitoring by banks and NBFCs
Building a Safer Digital Payment Ecosystem
With UPI now being the primary payment method in India, the FRI is a critical tool to reduce fraud and protect users. By enabling real-time detection and collaborative action, FRI helps secure both the telecom and financial domains.
The DoT has reaffirmed its commitment to creating a safe and resilient telecom ecosystem, emphasizing continued collaboration with financial institutions and payment platforms. As the FRI becomes more widely adopted, it is expected to become an industry standard, enhancing fraud prevention at a national scale.
