DoT introduces system to classify mobile numbers based on financial fraud risk
In a bid to curb cyber fraud and protect citizens from financial crimes, the Department of Telecommunications (DoT) has launched the Financial Fraud Risk Indicator (FRI)—a tool that helps banks, payment apps, and other financial services identify whether a mobile number has been used for fraudulent activities.
The tool checks if a phone number is linked to past fraud and then marks it as Medium, High, or Very High risk. It gathers this information from various sources, including the National Cybercrime Reporting Portal, DoT's Chakshu platform, and intelligence shared by banks and financial institutions.
Once a number is flagged, the system quickly shares its risk level with apps and banks so they can stop or delay suspicious transactions.
'In a big leap towards fighting cyber fraud, my team at @DoT_India has introduced the Financial Fraud Risk Indicator (FRI)—a tech-driven analytical tool for real-time fraud detection and prevention. FRI will empower banks, UPI service providers, and financial institutions with actionable intelligence, helping flag risky mobile numbers before digital payments are made,' said Communications Minister Jyotiraditya Scindia.
The DoT stated that fraudsters often use a mobile number for just a few days before discarding it. Since full verification can take time, receiving an early warning through FRI is a crucial step in preventing fraud.
The department also shares a list of mobile numbers that have been disconnected due to fraud or verification issues. These numbers are often involved in scams and are monitored closely.
PhonePe is one of the first companies to use this system. It now blocks payments to phone numbers marked as 'Very High' risk and displays alerts to users. The company reported that the tool has been effective in identifying fraudulent activity. PhonePe is also planning to display warnings for 'Medium' risk numbers.
Other major UPI apps like Paytm and Google Pay are also integrating FRI alerts into their systems. Some platforms are introducing additional steps, such as transaction delays and user confirmations, to prevent scams.
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