In a bold and timely move to protect India’s rapidly growing digital financial ecosystem, the Department of Telecommunications (DoT) has introduced the Financial Fraud Risk Indicator (FRI) — a risk-based intelligence tool aimed at curbing cyber fraud. This initiative marks a significant step in building trust and security in the digital payments landscape, particularly with UPI becoming the preferred payment method for millions of Indians.
The FRI, developed as part of the DoT’s Digital Intelligence Platform (DIP), is not just another technological tool. It is a multi-dimensional, real-time alert system that classifies mobile numbers as having medium, high, or very high financial fraud risk. This classification is derived from diverse and credible sources — the National Cybercrime Reporting Portal (NCRP), DoT’s own Chakshu platform, and intelligence shared by banks and financial institutions. Such an integrated data-driven mechanism allows for proactive, rather than reactive, cyber protection.
What makes FRI particularly impactful is its ability to provide advance warnings to stakeholders like UPI platforms, banks, and NBFCs.
India’s fintech revolution is both an economic opportunity and a security challenge. With more than 90% of UPI transactions handled by just a few platforms — PhonePe, Google Pay, and Paytm — coordinated action becomes vital. The good news is that these platforms are now integrating DIP alerts into their systems. The result is a powerful ecosystem-wide response to a problem that was, until now, scattered and reactive.
Equally commendable is the spirit of collaboration the FRI system fosters. Telecom regulators, financial institutions, and digital platforms are now working together with the common goal of securing the user. This whole-of-system approach sets the gold standard for how digital governance should function in the 21st century.
However, the journey is far from over. To make FRI truly effective, a few key steps must follow. First, universal adoption across all banks and payment systems must be ensured. Second, transparency in how risk levels are calculated and communicated will be critical for maintaining public trust. Finally, user education must accompany this technological intervention — alerts are useful only when users understand and respond appropriately to them.
In the war against cyber fraud, FRI is a new-age weapon — and India is using it wisely.
