Govt Alert for UPI Users: Paytm, PhonePe, Google Pay Transactions Under Watch
In a major development to curb rising cases of cyber fraud and financial crimes, the Department of Telecommunications (DoT) has rolled out a new Financial Fraud Risk Indicator (FRI).
In a major development to curb rising cases of cyber fraud and financial crimes, the Department of Telecommunications (DoT) has rolled out a new Financial Fraud Risk Indicator (FRI). This risk-based metric classifies mobile numbers as Medium, High, or Very High Risk based on their association with financial fraud.
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What is the Financial Fraud Risk Indicator (FRI)?
The FRI is part of the DoT’s Digital Intelligence Platform (DIP)—a multi-dimensional analytical tool that provides advanced actionable intelligence to financial institutions. It empowers banks, NBFCs, and UPI service providers to flag suspicious mobile numbers and take precautionary measures before processing digital transactions.
How Does the FRI Work?
Once a mobile number is flagged by a stakeholder, it undergoes immediate analysis across multiple parameters. The tool then classifies the number based on its likelihood of being involved in financial fraud:
- Medium Risk
- High Risk
- Very High Risk
The result is shared instantly with all relevant stakeholders through DIP, enabling real-time fraud prevention.
Inputs from Multiple Trusted Sources
The classification is based on input from various trusted channels, including:
- National Cybercrime Reporting Portal (NCRP) of Indian Cybercrime Coordination Centre (I4C)
- DoT’s Chakshu Platform
- Intelligence reports from banks and financial institutions
This collaborative approach ensures a robust and transparent assessment of mobile number risks.
Integration with Leading UPI Platforms
Top UPI platforms such as PhonePe, Paytm, and Google Pay—which account for over 90% of UPI transactions in India—have begun integrating DIP alerts into their systems. This move is expected to significantly reduce instances of cyber fraud during UPI transactions.
DoT’s Additional Measures: Mobile Number Revocation List (MNRL)
The Digital Intelligence Unit (DIU) of the DoT also shares the Mobile Number Revocation List (MNRL) with telecom and financial stakeholders. This list includes mobile numbers disconnected due to:
- Cyber-crime involvement
- Failed re-verification
- Exceeding prescribed SIM limits
These numbers are often linked to fraudulent financial activity and are flagged accordingly.
Why FRI is a Game-Changer
Cyber frauds involving mobile numbers typically occur within a short timeframe—often within days. Full verification of such numbers can take longer. The FRI provides an early warning system, helping institutions act swiftly and reduce financial damage.
Government’s Stand on Cybersecurity
According to the Ministry of Communications, this new initiative will:
- Enhance cyber protection and validation mechanisms
- Enable collaborative action between telecom and financial sectors
- Prevent millions of citizens from falling victim to financial scams
