What is the Financial Fraud Risk Indicator?
Financial Fraud Risk Indicator: Often, when we attempt online payments, transactions may fail or experience delays, leading us to believe it's a network issue or a technical glitch. However, if you encounter such situations, it might not just be a technical fault; it could be part of a government strategy to protect you from cyber fraud. Therefore, rather than panicking, it's essential to stay alert. Let's explore this new technology that companies are implementing to safeguard their customers against fraud.
What is FRI?
In response to the rising incidents of cyber fraud, the Department of Telecommunications introduced the Financial Fraud Risk Indicator on May 21. This system categorizes mobile numbers into three risk levels: medium, high, and very high, reflecting the associated risk. The data is shared through a digital intelligence platform, which is based on information from the Indian Cyber Reporting Portal, the DoT's Chakshu platform, and intelligence from banks and financial institutions.
How Does This System Operate?
How Does This System Operate?
The digital intelligence unit of the DoT compiles a revocation list of mobile numbers that have been disconnected due to reasons such as cyber fraud, fake re-verification, or exceeding limits. If a customer attempts to make a payment using such numbers, the service provider may slow down or reject the transaction.
Companies Implementing This System
Companies Implementing This System
PhonePe has become the first UPI platform to block transactions from mobile numbers classified with a very high FRI. Additionally, PhonePe Protect alerts users on their screens. Major UPI platforms like Google Pay and Paytm are also integrating DIP alerts into their systems. This implementation is expected to benefit millions of online users across the country, helping them avoid fraud and scams.
