Indian Economy News

The Department of Telecommunications (DoT) Introduces "Financial Fraud Risk Indicator (FRI)" to strengthen Cyber Fraud Prevention

In a significant move to curb cyber fraud and financial crime, the Department of Telecommunications (DoT) has launched the sharing of the “Financial Fraud Risk Indicator” (FRI) with key stakeholders. Developed under the Digital Intelligence Platform (DIP), this analytical tool provides banks, non-banking financial companies (NBFCs), and unified payments interface (UPI) service providers with real-time risk assessments of mobile numbers used in digital transactions. The FRI categorises mobile numbers as Medium, High, or Very High risk based on inputs from platforms such as the National Cybercrime Reporting Portal (NCRP), DoT’s Chakshu, and intelligence from financial institutions. The aim is to strengthen fraud detection and enable proactive intervention before digital payments are completed.
DoT's Digital Intelligence Unit (DIU) also shares a Mobile Number Revocation List (MNRL), highlighting numbers disconnected due to involvement in cybercrime, failed re-verification, or regulatory breaches. As fraud-related numbers typically have a short life span, the FRI is a critical early warning. UPI platforms, including PhonePe, Paytm, and Google Pay—which manage over 90% of UPI transactions—are integrating these alerts. For instance, PhonePe has adopted FRI under its PhonePe Protect feature, blocking transactions for Very High-risk numbers and issuing user alerts for Medium-risk numbers. Other platforms are incorporating delays and requiring user confirmation for flagged transactions. DoT continues collaborating with stakeholders to enhance fraud prevention, positioning FRI integration as a national standard to reinforce India’s digital financial ecosystem.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.