In today's digital age, online payments have become an integral part of our lives. Millions use UPI-based apps like Paytm, Google Pay, and PhonePe for daily transactions. However, the ease and speed of this payment system have also led to a surge in associated fraud cases. The government has taken a significant step to combat this, introducing a tool crucial in protecting digital payments from cybercriminals. The Telecom Department has launched a new tool called the Financial Fraud Risk Indicator (FRI) to enhance the security of UPI transactions.
What is the FRI Tool?
FRI, or Financial Fraud Risk Indicator, is an advanced security system designed to identify mobile numbers potentially used or previously involved in online fraud. This tool tracks mobile numbers in real-time and blocks suspicious activity, sending alerts immediately.
This tool is not limited to banks; it will function equally effectively on non-banking digital payment platforms like Paytm, Google Pay, PhonePe, and BHIM. Its aim is to proactively warn users about potential financial fraud.
How will FRI work?
The tool's functionality is highly intelligent. FRI identifies risks based on a mobile number's past records, KYC status, network activity, and cybercrime reports. As soon as a mobile number is flagged as suspicious, it generates an immediate alert and can block the number.
For example:
If a cybercriminal sends a UPI request from a fraudulent number previously involved in a scam, the tool will immediately track and block the transaction, alerting the relevant platform and bank.
Which users will benefit?
This tool will benefit all users of digital payment platforms, especially:
- Paytm users
- PhonePe users
- Google Pay users
- BHIM app users
- Other UPI and wallet users
This government initiative is a relief for the millions who fear fraud during online transactions.
Why was this tool necessary?
This tool was necessary because online payment fraud has increased dramatically in recent years. People are losing their hard-earned money to fraudulent calls, fake UPI links, incorrect QR codes, and fake banking apps. While the RBI and banks have issued warnings, a robust technological safeguard was needed to detect these threats proactively. The Telecom Department launched the 'Financial Fraud Risk Indicator' to address this gap, monitoring suspicious numbers and protecting users from fraud.
What will change with the FRI tool?
Reduced Fraud Cases: Prompt action on suspicious numbers will reduce fraud cases.
Improved Security: Mobile number-based verification and tracking will strengthen payment security.
Real-time Alerts: Users will receive alerts before any suspicious transaction.
Increased Trust: Public trust in digital payment platforms will increase.
What can the average user do?
- Complete KYC: Complete your mobile number KYC timely.
- Avoid Unknown Links/Requests: Do not accept payment requests from unknown numbers.
- Don't Ignore FRI Alerts: Immediately inform your bank or the relevant app if you receive a suspicious alert.
- Keep Payment Apps Updated: Update apps regularly for the latest security features.
Increased Responsibility for Telecom Companies
The effectiveness of the Financial Fraud Risk Indicator (FRI) tool relies not only on government action or user vigilance but also on the significant role of telecom companies. If a mobile number is involved in suspicious activity or its KYC is incomplete, the telecom companies will be responsible for immediately blocking the number. This tool will foster better coordination between telecom companies and digital payment platforms, enabling the early detection of potential fraud. This will allow timely alerts to users and curb the activities of cybercriminals.
