DoT Launches Financial Fraud Risk Indicator to Curb Telecom-Based Cybercrime
New Delhi, August 7: In a major step toward strengthening the fight against digital financial fraud, the Department of Telecommunications (DoT) has developed a Financial Fraud Risk Indicator (FRI) – a risk-based metric that flags mobile numbers associated with financial fraud activities. The initiative aims to protect customers and empower financial institutions to take preventive measures in real time.
The FRI categorizes mobile numbers into Medium, High, or Very High fraud risk levels. It is made available to stakeholders—including banks, NBFCs, and UPI service providers—through the Digital Intelligence Platform (DIP). The tool is designed to help these entities prioritize enforcement actions and implement safeguards for high-risk mobile numbers.
In response to advisories issued by the Reserve Bank of India (RBI), financial institutions have begun integrating the FRI with their systems. Recommended real-time response protocols include:
- Sending alerts or warnings
- Delaying or declining suspicious transactions
- Imposing credit or debit restrictions on suspect accounts
As per Action Taken Reports (ATRs) submitted via DIP, 34 banks and financial service providers have already taken action, resulting in:
- Freezing of 10.02 lakh bank accounts/payment wallets
- Debit/credit restrictions on an additional 3.05 lakh accounts
The FRI has been developed as part of the broader Digital Intelligence Unit (DIU) project of the DoT, which is aimed at curbing the misuse of telecom resources for cybercrime and financial fraud. The DIU project carries an outlay of ₹228.16 crore for a five-year period and includes multiple digital initiatives such as FRI and DIP.
The information was shared by Dr Pemmasani Chandra Sekhar, Minister of State for Communications and Rural Development, in a written reply to the Lok Sabha on Wednesday.
The rollout of FRI underscores the government’s commitment to building a secure and resilient digital financial ecosystem in the face of rising cyber threats, the ministry stated.
