In a significant move to safeguard India’s digital financial ecosystem, the Department of Telecommunications (DoT), under the Ministry of Communications, has introduced the Financial Fraud Risk Indicator (FRI)—a pioneering analytical tool designed to prevent cyber fraud through early detection and risk classification of mobile numbers. This initiative is a part of the Digital Intelligence Platform (DIP) and aims to fortify intelligence sharing with banks, UPI platforms, and financial institutions across the country.

The FRI system is engineered to evaluate and flag mobile numbers that exhibit suspicious behaviour based on data from multiple sources, including the National Cybercrime Reporting Portal (NCRP), DoT’s Chakshu platform, and inputs from the financial sector. Mobile numbers are categorised into three risk levels—Medium, High, and Very High—based on a comprehensive multi-dimensional analysis.

This classification system allows financial institutions and payment service providers to implement timely protective measures, such as blocking or delaying transactions involving high-risk numbers. The effectiveness of this approach has already been demonstrated by PhonePe, one of the country’s leading UPI platforms. The company has integrated FRI into its PhonePe Protect feature, declining transactions involving Very High risk numbers and alerting users of potential fraud.

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Furthermore, major UPI providers like Paytm and Google Pay, which together handle over 90% of India’s UPI transactions, are now actively integrating DIP alerts into their platforms. Some banks have also adopted precautionary mechanisms such as transaction delays and user confirmations when FRI alerts are triggered.

Given that UPI has emerged as the dominant mode of digital payment in India, the implementation of the FRI system is expected to significantly curb the misuse of telecom resources for financial crimes. According to DoT, mobile numbers frequently used in cyber fraud schemes often have short lifespans, making real-time risk identification essential. The FRI ensures that all stakeholders receive immediate alerts when suspicious activity is detected, enabling a swift, collaborative response.

DoT continues to engage with financial institutions to optimise alert mechanisms and reduce response time. As the integration of FRI matures, it is expected to become a benchmark for cybersecurity protocols in the financial sector.

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