Not a glitch: Govt’s new fraud detection tool may delay some UPI transactions
The Department of Telecommunications adopts the Financial Fraud Risk Indicator to tackle fraud in digital payments, affecting over 200 billion transactions in India amid rising cybercrime.
- May 22, 2025,
- Updated May 22, 2025 3:59 PM IST
If you've experienced a delay in your Unified Payments Interface (UPI) transaction on platforms like PhonePe, Google Pay, or Paytm recently, it may be due to a strategic move by government authorities. The Department of Telecommunications (DoT) has introduced the Financial Fraud Risk Indicator (FRI), a tool designed to combat financial crimes and cyber fraud in India's rapidly growing digital payment landscape. This measure aims to safeguard the extensive network of over 200 billion digital transactions conducted in the last year, a growth accompanied by a significant rise in cybercrime incidents.
The FRI system classifies mobile numbers into categories—Medium, High, and Very High—based on their likelihood of involvement in fraudulent activities.
This classification is informed by data from the Indian Cybercrime Coordination Centre’s National Cybercrime Reporting Portal, the DoT’s Chakshu platform, and intelligence from banks and financial institutions.
By identifying and flagging high-risk numbers, the tool enables financial institutions and UPI service providers to implement additional security measures for protecting consumers and validating transactions.
Gaurav Gupta, Senior Product Manager, Signzy, said: "For India’s booming digital payments landscape, FRI represents a vital preemptive strike against fraud. Last year alone, Indians conducted over 200 billion digital payment transactions, but this growth has been accompanied by a sharp rise in cybercrime and losses. By deploying intelligence-led risk indicators, the government is helping financial institutions stop scams in their tracks before innocent customers suffer any losses. Such proactive, joint action between regulators and industry players will strengthen public confidence and ensure our fintech infrastructure remains resilient and secure."
In the recent announcement, the DoT confirmed the sharing of FRI outputs with stakeholders, describing it as a component of the Digital Intelligence Platform aimed at empowering financial institutions with advanced, actionable intelligence. This initiative is part of a multi-dimensional analytical approach to prevent cyber fraud. Gaurav Gupta, Senior Product Manager at Signzy, highlighted FRI as a critical preventive strategy against fraud, noting its importance in maintaining public trust and the security of the fintech infrastructure.
Major UPI platforms such as Paytm and Google Pay, which handle over 90% of India's UPI transactions, are increasingly integrating the FRI system. These platforms have implemented additional verification steps, such as transaction delays and user confirmations, to mitigate fraud risks. Banks are also leveraging the shared data to proactively reduce potential fraud incidents, enhancing overall transaction security.
If you've experienced a delay in your Unified Payments Interface (UPI) transaction on platforms like PhonePe, Google Pay, or Paytm recently, it may be due to a strategic move by government authorities. The Department of Telecommunications (DoT) has introduced the Financial Fraud Risk Indicator (FRI), a tool designed to combat financial crimes and cyber fraud in India's rapidly growing digital payment landscape. This measure aims to safeguard the extensive network of over 200 billion digital transactions conducted in the last year, a growth accompanied by a significant rise in cybercrime incidents.
The FRI system classifies mobile numbers into categories—Medium, High, and Very High—based on their likelihood of involvement in fraudulent activities.
This classification is informed by data from the Indian Cybercrime Coordination Centre’s National Cybercrime Reporting Portal, the DoT’s Chakshu platform, and intelligence from banks and financial institutions.
By identifying and flagging high-risk numbers, the tool enables financial institutions and UPI service providers to implement additional security measures for protecting consumers and validating transactions.
Gaurav Gupta, Senior Product Manager, Signzy, said: "For India’s booming digital payments landscape, FRI represents a vital preemptive strike against fraud. Last year alone, Indians conducted over 200 billion digital payment transactions, but this growth has been accompanied by a sharp rise in cybercrime and losses. By deploying intelligence-led risk indicators, the government is helping financial institutions stop scams in their tracks before innocent customers suffer any losses. Such proactive, joint action between regulators and industry players will strengthen public confidence and ensure our fintech infrastructure remains resilient and secure."
In the recent announcement, the DoT confirmed the sharing of FRI outputs with stakeholders, describing it as a component of the Digital Intelligence Platform aimed at empowering financial institutions with advanced, actionable intelligence. This initiative is part of a multi-dimensional analytical approach to prevent cyber fraud. Gaurav Gupta, Senior Product Manager at Signzy, highlighted FRI as a critical preventive strategy against fraud, noting its importance in maintaining public trust and the security of the fintech infrastructure.
Major UPI platforms such as Paytm and Google Pay, which handle over 90% of India's UPI transactions, are increasingly integrating the FRI system. These platforms have implemented additional verification steps, such as transaction delays and user confirmations, to mitigate fraud risks. Banks are also leveraging the shared data to proactively reduce potential fraud incidents, enhancing overall transaction security.