DoT Launches Financial Fraud Risk Indicator

• 23 May 2025

In May 2025, the Department of Telecommunications (DoT) launched a Financial Fraud Risk Indicator (FRI) to help financial institutions detect and prevent cyber fraud tied to mobile numbers.

• The Financial Fraud Risk Indicator (FRI) is a sophisticated analytical tool that evaluates mobile numbers for potential involvement in financial fraud and flags them accordingly.
• FRI categorizes mobile numbers under three risk levels—Medium, High, and Very High—based on their association with cyber fraud patterns and suspicious activity.
• The tool is designed to provide proactive, real-time intelligence to banks, Non-Banking Financial Companies (NBFCs), and UPI service providers, enabling pre-emptive fraud prevention.
• When a flagged number is involved in a proposed digital payment, the system triggers validation checks to prevent unauthorized or fraudulent transactions.
• The FRI enhances the digital payment ecosystem’s security by allowing financial institutions to prioritize enforcement and apply extra layers of customer protection where necessary.