The Department of Telecommunications (DoT) has launched a ‘Financial Fraud Risk Indicator (FRI)’ to flag mobile numbers based on their associated risk of financial fraud.
The Telecom Department has reportedly rolled out the ‘Financial Fraud Risk Indicator (FRI),’ which aims to enhance intelligence sharing among banks, UPI service providers, and financial institutions. This initiative is seen as a significant advancement in the fight against cyber fraud and financial crime, according to an official release made on Wednesday. The introduction of the FRI is expected to bolster cyber protection and validation checks for mobile numbers that are flagged when digital payments are attempted. This tool allows for swift, targeted, and collaborative action in response to suspected fraud across both telecom and financial sectors, as outlined in the release.
It was mentioned that the Department of Telecommunications (DoT) has begun sharing the FRI with relevant stakeholders. This metric is derived from a multi-dimensional analytical tool developed as part of the Digital Intelligence Platform (DIP), which is designed to provide financial institutions with actionable intelligence for combating cyber fraud.
How FRI works
The release further explained that the FRI functions as a risk-based metric, categorising a mobile number based on its associated risk of financial fraud into ‘Medium,’ ‘High,’ or ‘Very High.’ This classification results from data gathered from numerous sources, including reports from the Indian Cybercrime Coordination Centre (I4C) National Cybercrime Reporting Portal, the DoT’s Chakshu platform, and intelligence supplied by banks and financial institutions.
High-risk mobile numbers
It was emphasised that this tool empowers stakeholders, particularly banks, non-banking financial companies (NBFCs), and UPI service providers, to focus their efforts on enforcement and take additional protective measures for customers when a mobile number is deemed high-risk.
Additionally, it was explained that the Digital Intelligence Unit (DIU) of DoT regularly provides stakeholders with a Mobile Number Revocation List (MNRL), detailing disconnected mobile numbers along with the reasons for their disconnection, such as involvement in cybercrime or failed re-verification. These numbers are often linked to financial fraud.
The release highlighted that the life span of a mobile number used in cyber fraud is typically short, often just a few days, while complete verification can take longer. Therefore, having an advanced risk indicator for such numbers is highly valuable. As soon as a mobile number is flagged, it undergoes a detailed analysis, which classifies its financial risk level, and this information is swiftly shared with stakeholders through the DIP.
PhonePe early adopter
PhonePe has reportedly been one of the early adopters of the FRI, utilising it to decline transactions associated with mobile numbers categorised as Very High risk and providing on-screen alerts as part of its PhonePe Protect feature. Data from PhonePe has indicated that the model is effective, with a high predictability rate for numbers flagged as being involved in cyber fraud cases. They are also working on issuing proactive user warnings for transactions linked to Medium risk numbers before allowing such transactions to proceed, as stated in the release.
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Inputs from PTI
