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India Launches Real-Time Fraud Detection System to Protect Digital Payments

The Financial Fraud Risk Indicator, now live on major UPI platforms, classifies mobile numbers by fraud risk using multi-source data to block or delay suspicious transactions.

Govt will now decline UPI transactions to certain numbers, here is what you should know
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UPI Payments
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Overview

  • The Department of Telecommunications (DoT) has rolled out the Financial Fraud Risk Indicator (FRI) under its Digital Intelligence Platform to combat mobile-based financial fraud.
  • FRI uses data from the National Cybercrime Reporting Portal, DoT’s Chakshu platform, and financial institutions to classify mobile numbers as Medium, High, or Very High risk for fraud.
  • Major UPI platforms, including PhonePe, Paytm, and Google Pay, have integrated FRI alerts to block or delay transactions to flagged numbers, enhancing user protection.
  • PhonePe has already implemented transaction blocks for Very High-risk numbers and issues user alerts, with other platforms adopting similar safeguards.
  • This proactive system replaces reactive measures like mobile number revocation lists, aiming to protect millions of UPI users from cyber fraud in India’s digital payment ecosystem.