The Department of Telecommunications has launched the Financial Fraud Risk Indicator (FRI), an advanced tool designed to combat cyber fraud and financial crimes by providing intelligence to banks, UPI service providers, and financial institutions. Developed as part of the Digital Intelligence Platform (DIP), FRI enables swift and targeted responses to potential fraud risks associated with mobile numbers flagged in digital transactions.
FRI functions as a risk classification system, categorizing mobile numbers based on their likelihood of involvement in financial fraud. Numbers are designated as Medium, High, or Very High risk, based on multi-dimensional data analysis drawn from various reporting sources, including the Indian Cybercrime Coordination Centre’s National Cybercrime Reporting Portal (NCRP), the Department of Telecommunications’ Chakshu platform, and intelligence shared by financial institutions. This classification enables banks, non-banking financial companies, and UPI service providers to take immediate action, reinforcing customer protection mechanisms.
The Digital Intelligence Unit of the Department of Telecommunications routinely shares the Mobile Number Revocation List (MNRL) with stakeholders, detailing numbers disconnected due to involvement in cybercrime, failed re-verification, or exceeding prescribed limits. These numbers often feature prominently in financial fraud cases. By integrating real-time risk assessments, FRI enhances validation checks when digital payments are initiated to flagged numbers, ensuring proactive security measures are in place before transactions are completed.
One of the initial adopters of FRI, PhonePe, has integrated the tool into its security framework, declining transactions linked to Very High-risk numbers while displaying alerts under its PhonePe Protect feature. Data from PhonePe indicates that FRI successfully predicts fraudulent activity with high accuracy, allowing financial platforms to block transactions before users fall victim to cyber scams. For numbers categorized as Medium risk, PhonePe is developing a system to issue proactive warnings before transactions are approved.
Other leading UPI platforms, including Paytm and Google Pay, which together account for over 90 percent of UPI transactions in India, have also begun implementing DIP alerts in their systems. Some financial institutions have introduced transaction delays and additional user confirmations when dealing with flagged numbers, further strengthening fraud prevention efforts.
With UPI emerging as the preferred payment method across the country, the integration of FRI into financial security protocols is expected to protect millions of users from cyber fraud. By facilitating real-time data sharing and cross-sector collaboration, the tool strengthens defenses in both telecom and financial domains.
The Department of Telecommunications remains committed to preventing the misuse of telecom resources through technology-driven national security solutions and continued cooperation with stakeholders. Efforts are underway to further refine alert mechanisms and reduce response time, ensuring seamless fraud prevention across digital financial ecosystems. The integration of FRI into customer-facing applications is expected to become a standard industry practice, enhancing the systemic resilience of India’s digital economy.
