Latest news with #FinancialRiskIndicator
Time of India
5 days ago
- Business
- Time of India
‘Financial Risk Indicator' used to crack down on digital scams: DoT blacklists over 3 lakh fraud-linked SIMs; PhonePe, Paytm, HDFC among users
DoT blacklists 3 lakh to 4 lakh SIMs (AI-generated image) The Department of Telecommunications has identified and blacklisted between 300,000-400,000 SIM cards linked to fraudulent activities, according to government statistics. Launched in May, the Financial Risk Indicator (FRI) identifies approximately 2,000 high-risk telephone numbers daily, potentially involved in employment or investment scams. Additional suspicious SIMs are detected through AI pattern matching. This system has enabled UPI platforms such as Paytm, GPay and PhonePe to prevent substantial fraudulent transactions in recent weeks, according to a senior DoT official's statement to ET. The Reserve Bank of India issued guidance in July to all banking institutions to incorporate the FRI into their systems. "As a result, time-to-action on fraud accounts has been reduced to a few hours," the DoT official said. "This also signals increasing maturity of DoT's Digital Intelligence Platform which was launched with the aim of real-time data exchange among stakeholders." Financial institutions are implementing FRI-based preventive measures, including blocking suspicious transactions, sending customer alerts, and introducing delays for high-risk transactions. Major institutions including PhonePe, Punjab National Bank, HDFC Bank, ICICI Bank, Paytm and India Post Payments Bank are actively utilising the platform, as previously reported by the telecom department. MFilterIt, a digital fraud prevention organisation, has implemented AI systems on X, Instagram and Facebook to identify and interact with fraudulent accounts. A single AI programme identifies approximately 125 suspicious accounts daily. "These are investment scam fraudsters which may or may not be using mule accounts," said Dhiraj Gupta, cofounder and chief technology officer at MFilterIt. "We are tracking social media for these fraudsters who post tall claims like 'double your money in 6hrs' and then our bot interacts with these people posing as genuine investors. This persuades the criminals to reveal their information like UPI ID or barcode," he explained. Signzy's senior product manager, Gaurav Gupta, also considers the FRI a crucial preventive measure against fraud. Despite Indians conducting over 200 billion digital payments last year, cybercrime has increased significantly. The government's intelligence-based risk indicators assist financial institutions in preventing scams. The DoT's Sanchar Saathi portal reported 3.58 million blocked mobile devices linked to cybercrime. The portal's Chakshu feature allows users to report fraudulent communications via calls, SMS, or WhatsApp. The department utilises AI tools like ASTR to detect fraudulent SIM registrations. TRAI is testing a Digital Consent Acquisition system to manage spam communications and has established a specific 160-number series for commercial transactions. Stay informed with the latest business news, updates on bank holidays and public holidays . Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025
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Business Standard
5 days ago
- Business
- Business Standard
Nearly 4 million SIMs deactivated as govt cracks down on digital fraud
The government has blacklisted nearly 4 million SIM cards as part of a nationwide crackdown on mobile and financial fraud, powered by AI-based detection tools, according to a report by The Economic Times. The Department of Telecommunications (DoT), in partnership with telecom service providers and financial institutions, has significantly stepped up efforts to detect and disable fraudulent SIMs using advanced digital tools. At the core of the operation is the Financial Risk Indicator (FRI), an AI-powered system capable of identifying high-risk numbers based on behavioural patterns, such as unusual calling or transaction activity. Since its rollout in May, FRI has been flagging around 2,000 numbers daily. This large-scale effort follows alerts generated by the FRI tool, in tandem with the DoT's ASTR (AI and facial recognition-driven portal under the Sanchar Saathi initiative). What triggered the move According to the report, officials uncovered widespread misuse of identity documents—often using fake or cloned Aadhaar cards—to obtain multiple mobile connections under the same identity. These SIMs were then used for SIM-swap frauds, phishing attacks, OTP thefts, and impersonation scams. The AI system proved instrumental in identifying such misuse patterns, particularly instances where more than nine SIMs were issued under a single identity. These irregularities triggered further investigation and subsequent action. How the system works Once the ASTR platform detects suspicious activity—such as multiple SIMs issued against the same ID or signs of misuse—it flags the affected numbers and alerts the respective telecom operators. These operators are then responsible for initiating a verification process, which often requires users to undergo re-KYC (Know Your Customer) checks. If the re-KYC process fails or the documents provided are found to be forged or unrelated to the subscriber, the SIM is disconnected. In several cases, telecom agents involved in facilitating these fraudulent issuances have also been blacklisted and barred from issuing further connections. This verification and disconnection pipeline has become faster and more precise with the integration of AI and facial recognition technologies, allowing authorities to take near real-time action against suspicious mobile connections. 'The ASTR system flags suspicious numbers, which are then verified by telecom operators. If found invalid or unverified, they are promptly disconnected,' a senior DoT official told The Economic Times. Operators are mandated to complete re-KYC verification and disable flagged numbers. Authorities have confirmed that both state-wise breakdowns and operator-specific data are being closely monitored to ensure compliance. How this affects mobile users and digital security For telecom users, the crackdown emphasises the importance of maintaining proper KYC compliance and vigilance against misuse of personal documents. It serves as a wake-up call for individuals to monitor how their identity is used, particularly in mobile registrations. India has witnessed a sharp rise in cybercrime incidents linked to mobile numbers. Fraudsters increasingly exploit SIMs to bypass security layers in digital transactions, access OTPs, and impersonate users across UPI apps and banking platforms. These scams have led to substantial financial losses and widespread data breaches. The blacklisting initiative also comes amid growing concern over mobile-enabled scams involving social engineering tactics, such as fake job offers, investment schemes, and technical support frauds. These frauds typically rely on untraceable or fraudulently registered SIM cards. Sanchar Saathi and ASTR's role The ASTR system and Sanchar Saathi portal were launched in 2023 to address identity misuse in telecom services. Earlier initiatives focused on pilot projects and public awareness campaigns. The current drive marks a shift towards real-time fraud detection and coordinated response across stakeholders, including banks, UPI platforms, and law enforcement agencies.
Time of India
6 days ago
- Business
- Time of India
Nearly 400k SIMs axed for fraud
The telecom department's Financial Risk Indicator (FRI) has blacklisted 300,000-400,000 SIMs used in fraudulent schemes. This initiative flags 2,000 high-risk numbers daily, aiding UPI platforms in preventing crores worth of suspicious transactions. Banks are integrating FRI to reduce fraud response times, with institutions like PhonePe and HDFC Bank actively using the platform to prevent fraud. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: The telecom department's latest initiative to categorise high-risk fraud accounts has caught and blacklisted 300,000-400,000 telecom SIMs used in fraudulent schemes, show government Financial Risk Indicator (FRI), launched in May, is now daily flagging 2,000 high-risk phone numbers that may be involved in investment or job scams, and other fraudulent activities. More SIMs on the network are then identified using artificial intelligence-based pattern matching. This has helped UPI platforms like Paytm , GPay and PhonePe prevent suspicious transactions worth crores of rupees in the past month, a senior official at the Department of Telecommunications (DoT) told July, banking regulator Reserve Bank of India issued an advisory to all commercial banks, co-operative banks and payments banks to integrate the FRI with their system."As a result, time-to-action on fraud accounts has been reduced to a few hours," the DoT official said. "This also signals increasing maturity of DoT's Digital Intelligence Platform which was launched with the aim of real-time data exchange among stakeholders."Banks and financial institutions are using the FRI to take preventive measures, such as declining suspicious transactions, issuing alerts or warnings to customers, and delaying transactions flagged as high system's utility has already been demonstrated with leading institutions such as PhonePe, Punjab National Bank ICICI Bank , Paytm and India Post Payments Bank actively using the platform, the telecom department had said part of this initiative, digital fraud prevention platform MFilterIt has deployed AI-based honeypots on X, Instagram and Facebook which scrape social media to find and interact with such scam accounts. Nearly 125 such accounts are discovered and flagged by a single AI bot daily, the company said."These are investment scam fraudsters which may or may not be using mule accounts," said Dhiraj Gupta, cofounder and chief technology officer at MFilterIt. "We are tracking social media for these fraudsters who post tall claims like 'double your money in 6hrs' and then our bot interacts with these people posing as genuine investors. This persuades the criminals to reveal their information like UPI ID or barcode," he FRI represents a vital pre-emptive strike against fraud, said Gaurav Gupta, senior product manager at digital identity verification agency Signzy.
