India’s digital economy is booming — and so are cyber frauds. In the first 10 months of FY2024-25 alone, ₹4,245 crore worth of digital financial frauds were reported across 2.4 million cases, as per the Ministry of Finance. That’s a staggering 67% spike from 2022-23, clearly signalling an urgent need for preventive action.
Financial Fraud Risk Indicator (FRI)
To combat this growing menace, the Department of Telecommunications (DoT) has launched the Financial Fraud Risk Indicator (FRI). It’s a powerful new tech-led solution that’s part of DoT’s Digital Intelligence Platform (DIP) and aims to help financial institutions detect and block fraudulent mobile numbers in real time.
How FRI Works
FRI classifies mobile numbers as Medium, High, or Very High risk for financial fraud — based on advanced analytics and inputs from banks, the Cybercrime Reporting Portal, and DoT’s Chakshu platform. When a digital payment is attempted, the system flags high-risk numbers and alerts stakeholders like banks and UPI platforms.
The idea is simple: catch suspicious mobile numbers before fraud happens.
PhonePe, Paytm & Google Pay Onboard
Top UPI apps — including PhonePe, Paytm, and Google Pay — have begun integrating FRI signals into their systems. PhonePe has already blocked transactions linked to very high-risk numbers and is working on proactive alerts for medium-risk ones.
Some platforms are even introducing transaction delays and user confirmation prompts to help users make informed choices before proceeding with risky transfers.
A National-Level Fraud Firewall in the Making
The DoT's initiative is a step toward building a national cyber fraud firewall by bridging telecom data and financial systems. With millions of Indians relying on UPI daily, FRI’s integration could potentially save thousands of crores in digital fraud.
By turning data into real-time defense, FRI could soon become the industry standard for cyber fraud prevention in India’s digital ecosystem.
