New DoT Fraud Detection Tool Set to Safeguard Users from Digital Payment Scams: Check Details
To combat this growing threat, the Department of Telecommunications (DoT) has launched a vital tool aimed at safeguarding mobile users—the Financial Fraud Risk Indicator (FRI).
As digital transactions become the norm in India, online financial frauds have grown rapidly. To combat this growing threat, the Department of Telecommunications (DoT) has launched a vital tool aimed at safeguarding mobile users—the Financial Fraud Risk Indicator (FRI).
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What Is the Financial Fraud Risk Indicator (FRI)?
The FRI is a new feature under the Digital Intelligence Platform (DIP) developed by the DoT. It is designed to identify and flag mobile numbers suspected of involvement in fraudulent activities. By analyzing various data sources, FRI provides alerts that help users and institutions stay vigilant while making financial transactions.
Also Read: RBI Revises ATM Withdrawal Charges Effective May 1, 2025: All You Need to Know
Who Will Benefit from FRI?
The FRI system will primarily aid financial institutions, banks, and digital payment platforms. It will alert these stakeholders about mobile numbers that carry a fraud risk, allowing them to assess potential threats before processing transactions. This proactive approach aims to stop scams before they happen.
Three Levels of Risk Classification
FRI classifies phone numbers into three categories:
- Medium Risk
- High Risk
- Very High Risk
This classification is based on inputs from the National Cybercrime Reporting Portal (NCRP), DoT’s Chakshu platform, and intelligence provided by financial institutions. It ensures that decisions are backed by verified and extensive data.
Platforms Already Using FRI
Paytm was among the first platforms to integrate FRI. It now blocks transactions involving Very High-Risk mobile numbers and has begun issuing warnings via its PhonePe Protect feature.
Other major platforms, such as Google Pay and PhonePe, have also begun using FRI alerts to delay or block suspicious transactions. These platforms now prompt users for additional confirmation and are using the data to fine-tune their fraud detection systems.
Strengthening National Digital Security
This initiative by the DoT marks a significant step toward building a more secure digital payment ecosystem in India. With widespread adoption of the Financial Fraud Risk Indicator, users can expect a safer and more reliable transaction experience.
