The Department of Telecommunications (DoT) announces to share the Financial Fraud Risk Indicator (FFRI) with the stakeholders like banks, NBFCs, and UPI service providers. The indicator is an output of a multi-dimensional analytical tool developed as part of the Digital Intelligence Platform (DIP) to empower financial institutions with advanced actionable intelligence for cyber fraud prevention. 

The system aims to enhance cyber protection and validation checks in case of mobile numbers flagged with this tool when digital payment is proposed to be made to such numbers. This will help payment solutions providers like Paytm, Google Pay, and others to flag high-risk mobile numbers and prevent fraud before it happens. 

One such example is PhonePe, which has used it to decline transactions linked to Very High FRI mobile numbers and display an on-screen alert as part of the PhonePe Protect feature. 

First, identify the number

FRI is a risk-based metric that classifies a mobile number as having been associated with medium, high, or very high risk of financial fraud. This classification involves receiving and analyzing inputs obtained from various stakeholders, including reporting on the Indian Cyber Crime Coordination Centre (I4C’s) National Cybercrime Reporting Portal (NCRP), DoT’s Chakshu platform, and intelligence shared by banks and financial institutions. 

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Second, check for activity

Further, the Digital Intelligence Unit (DIU) of DoT regularly shares the list of mobile numbers that were disconnected with stakeholders along with the reasons for disconnections, for instance, found involved in cybercrime, failed re-verification, or exceeding prescribed limits. The Digital Intelligence Unit (DIU) of DoT regularly shares the list of mobile numbers that were disconnected with stakeholders along with the reasons for disconnections, for instance, being found involved in cybercrime, failing re-verification, or exceeding prescribed limits.

Third, classify and act

Thus, as soon as a suspected mobile number is flagged by a stakeholder after a full-fledged check and verification, it undergoes multi-dimensional analysis and is classified into medium, high, or very high financial risk associated with it. The assessment of the number is then immediately shared with all stakeholders by DIP.

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Need for a Payment Safety Shield

With UPI emerging as the most preferred payment method across India, this initiative has the potential to protect millions from cyber fraud. The FRI enables swift, focused, and coordinated action against suspected fraudulent activity in both the telecom and financial sectors.