DoT Launches Financial Fraud Risk Indicator to Tackle Cyber Crime

To fortify India’s digital financial landscape against rising cyber threats, the Department of Telecommunications (DoT) has unveiled the Financial Fraud Risk Indicator (FRI). This system, part of the Digital Intelligence Platform, flags mobile numbers with potential fraud risk, empowering banks.

Shivam Last updated on May 22nd, 2025 11:52 am

In a proactive move to safeguard India’s fast-growing digital economy, the Department of Telecommunications (DoT) has introduced the Financial Fraud Risk Indicator (FRI), a powerful analytics tool under the Digital Intelligence Platform (DIP). This initiative aims to identify and block mobile numbers linked to potential financial frauds, thereby bolstering cyber safety and helping institutions such as banks and UPI platforms prevent fraudulent transactions.

Why in News?

On 21st May 2025, DoT officially announced the rollout of FRI to financial stakeholders, marking a crucial step toward real-time fraud prevention and cybercrime mitigation in India’s digital ecosystem. The move follows a rise in cybercrime linked to mobile numbers used for digital payments, especially UPI transactions.

Key Objectives of FRI

Prevent financial fraud using pre-flagged mobile numbers.
Enable early detection and warning mechanisms for stakeholders.
Protect digital transactions through enhanced validation checks.

What is the Financial Fraud Risk Indicator (FRI)?

A risk-based metric categorizing mobile numbers as,,

Medium
High
Very High risk.

The categorization is based on,

Inputs from the National Cybercrime Reporting Portal (NCRP)
DoT’s Chakshu platform
Banks and financial institutions
Helps in prioritizing response and blocking fraudulent transactions.

How It Works

DoT’s Digital Intelligence Unit (DIU) shares flagged numbers with,

Banks
UPI service providers
NBFCs and other financial bodies
Flagged numbers appear in the Mobile Number Revocation List (MNRL).
Real-time alerts are sent for validation before UPI payments are executed.

Industry Adoption and Use Cases

PhonePe

Declines high-risk FRI numbers via PhonePe Protect.
Warns users before allowing medium-risk transactions.

Paytm and Google Pay

Implementing transaction delays and alerts for flagged numbers.

Banks

Using DIP alerts to prevent suspicious transactions.

Importance of the Initiative

With UPI being India’s top payment mode, this tool can prevent massive financial losses.
Enables collaborative and targeted response across telecom and financial sectors.
Enhances systemic resilience and public trust in digital payments.

Summary/Static	Details
Why in the news?	DoT Launches Financial Fraud Risk Indicator to Tackle Cyber Crime
Announced by	Department of Telecommunications (DoT)
Feature	Introduced Financial Fraud Risk Indicator (FRI)
Platform Used	Digital Intelligence Platform (DIP)
Purpose	Cyber fraud prevention through risk classification of numbers
Risk Levels	Medium, High, Very High
Initial Adopter	PhonePe (via PhonePe Protect feature)
Stakeholders Involved	Banks, NBFCs, UPI providers, DoT, Cybercrime Portal (I4C)
Importance	Prevents cyber fraud, protects UPI ecosystem, aids early warnings