Government launches ‘Financial Fraud Risk Indicator’ to safeguard mobile users

The multi-dimensional analytical tool, developed as part of the Digital Intelligence Platform (DIP), empowers financial institutions with advanced actionable intelligence for cyber fraud prevention

New Delhi: In a key step towards combating cyber fraud and financial crime via mobiles, the Department of Telecommunications (DoT) on Wednesday announced sharing of “Financial Fraud Risk Indicator (FRI)” with its stakeholders.

The multi-dimensional analytical tool, developed as part of the Digital Intelligence Platform (DIP), empowers financial institutions with advanced actionable intelligence for cyber fraud prevention.

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This will enhance cyber protection and validation checks in case of mobile numbers flagged with this tool when digital payment is proposed to be made to such numbers, said the Ministry of Communications.

It is a risk-based metric that classifies a mobile number as having been associated with Medium, High, or Very High risk of financial fraud.

Leading UPI platforms — PhonePe, Paytm, and Google Pay, which collectively account for over 90 per cent of UPI transactions — have begun integrating DIP alerts into their systems.

“One of the leading UPI platforms has introduced transaction delays, with alerts and needing user confirmations. Other banks are also actively using the data for mitigating cyber fraud,” said the Ministry.

With UPI being the most preferred payment method across India, this intervention could save millions of citizens from falling prey to cyber fraud. The FRI allows for swift, targeted, and collaborative action against suspected fraud in both telecom and financial domains.

The Digital Intelligence Unit (DIU) of DoT regularly shares the list of mobile numbers that were disconnected, with stakeholders, along with the reasons for disconnections — found involved in cybercrime, failed re-verification and exceeding prescribed limits. These numbers are also usually used for financial fraud.

As soon as a suspected mobile number is flagged by a stakeholder, it undergoes multi-dimensional analysis and is classified into Medium, High, or Very High financial risk associated with it. It then shares this assessment about the number immediately with all stakeholders through DIP.

DoT said it is committed to preventing misuse of telecom resources by implementing national-level technology-driven solutions and collaborating with stakeholders, thus ensuring a secure and safe telecom ecosystem for all citizens.