DoT Launches Financial Fraud Risk Indicator. Here’s How It Works

The Department of Telecommunications (DoT) has introduced the Financial Fraud Risk Indicator (FRI), a tool developed under its Digital Intelligence Platform (DIP).

It is designed to help financial institutions detect and prevent cyber fraud more effectively.

FRI enables real-time intelligence sharing with banks, UPI providers, and other financial entities. It evaluates mobile numbers and classifies them into three risk categories: Medium, High, or Very High.

This classification is touted to help institutions take targeted action, prioritise enforcement and strengthen customer protection measures when a mobile number is flagged as high-risk.

PhonePe is one of the first platforms to adopt FRI. It uses the tool to block transactions linked to Very High risk numbers and displays alerts through its PhonePe Protect feature.