Department of Telecommunications (DoT) launched the Financial Fraud Risk Indicator (FRI)– a risk-based digital tool to assess mobile numbers involved in potential cyber financial frauds. It is part of the Digital Intelligence Platform (DIP) to provide advance alerts to banks, NBFCs, and UPI platforms before financial transactions are made by identifying high-risk mobile numbers involved in suspicious transactions.
What is Financial Fraud Risk Indicator (FRI)?
A risk classification metric that assigns a Medium, High, or Very High risk score to mobile numbers.
Risk identification is based on:
- Reports on National Cybercrime Reporting Portal (NCRP) by Indian Cybercrime Coordination Centre (I4C)
- Complaints via Chakshu Platform (DoT)
- Intelligence from banks and NBFCs
Purpose:
- To help prevent cyber financial frauds by alerting stakeholders or digital payment platforms like banks, UPI providers, and NBFCs, before a digital payment is completed using a suspicious number.
How It Works?
- Flagged numbers are analyzed using multi-dimensional analytics under DIP.
- The Digital Intelligence Unit (DIU) shares real-time alerts with stakeholders.
- Integration with Mobile Number Revocation List (MNRL), which includes numbers disconnected due to:
- Cybercrime
- Failed verification
- Breach of usage limits
- Stakeholders use FRI to delay, decline, or warn users before completing high-risk transactions.
Implementation by Stakeholders:
PhonePe:
- Declines transactions involving Very High FRI numbers.
- Displays alerts via the PhonePe Protect feature.
- Shows warnings for Medium FRI numbers before proceeding.
UPI Platforms:
- PhonePe, Paytm, and Google Pay, which handle over 90% of UPI transactions, are integrating FRI alerts.
- Some platforms have introduced delays and user confirmations for flagged transactions.
Banks:
- Using FRI data to improve internal fraud detection systems and response times.
Significance:
- Enables proactive fraud prevention through early warning systems.
- Strengthens telecom-fintech collaboration to secure India’s growing digital payment infrastructure.
- Reduces losses from cyber financial crimes and increases user trust.
- Helps address the short life span of mobile numbers used in frauds, which usually lasts only a few days.
Related Government Initiatives Against Cyber Financial Fraud
1. Legal Frameworks:
- Information Technology Act, 2000
- Bhartiya Nyaya Sanhita, 2023
- Protection of Children from Sexual Offences (POCSO) Act, 2012
2. Platforms and Tools:
- Chakshu: Citizen reporting platform for suspicious calls/messages under Sanchar Saathi.
- e-Zero FIR: Facility under I4C for filing FIRs online regardless of jurisdiction.
- National Cyber Crime Reporting Portal: For citizens to report cyber incidents online.
- I4C (Indian Cybercrime Coordination Centre): Established by the Ministry of Home Affairs to tackle cybercrime.
3. Technological Tools:
- MuleHunter (RBI): AI-based tool to identify money mule accounts.
- Citizen Financial Cyber Fraud Reporting and Management System: Over ₹1,200 crore recovered from fraud victims through coordinated action.
4. Telecom Measures:
- 3.2 lakh SIM cards and 49,000 IMEIs associated with frauds have been blocked.
5. Public Awareness:
- Campaigns through social media, radio, and education programs to boost cyber awareness.