New Fraud Indicator Flags Risky Mobile Numbers in Real-time To Thwart UPI Scams

Moneylife Digital Team 22 May 2025

Consumer Interest

In a significant step to curb cyber-enabled financial crimes, the department of telecommunications (DoT) has introduced a new intelligence-sharing tool called the financial fraud risk indicator (FRI). This tech-enabled feature, integrated into the digital intelligence platform (DIP), aims to alert banks, Unified Payment Interface (UPI) platforms and financial institutions when digital payments are attempted to mobile numbers suspected of being involved in fraud.

FRI assesses and classifies mobile numbers based on the likelihood of financial fraud, categorising them as medium, high, or very high risk. It draws from multiple sources, including complaints from the national cybercrime reporting portal (NCRP), DoT’s Chakshu platform, and data shared by banks and digital payment providers. When a number is identified as risky, this assessment is instantly disseminated to stakeholders, allowing for immediate defensive action.

Calling FRI as India's ‘kawach’ against fraudulent payments, Jyotiraditya Scindia, Union minister for communications, in a post on X says, "FRI will empower banks, UPI service providers and financial institutions with actionable intelligence, helping flag risky mobile numbers before digital payments are made. With UPI as India’s most preferred payment mode, this initiative will safeguard millions and strengthen trust in our digital ecosystem."

According to DoT, the initiative is designed to give financial platforms the ability to verify mobile numbers in real-time, before transactions are completed. This comes as UPI continues to dominate as India’s most-used payment method.

DoT noted that such advance warning is critical, as many mobile numbers used in scams have short lifespans and may be exploited for fraud within hours of activation, often before full verification can be completed.

PhonePe is among the first digital payment companies to integrate FRI into its system. It now declines transactions to very high-risk numbers and displays alerts under its PhonePe protection feature. The company reported that the majority of flagged numbers later proved to be involved in fraud, validating the tool’s accuracy. For medium-risk numbers, PhonePe is working on warning users proactively before payment is made.

Other major UPI players, including Paytm and Google Pay, together accounting for over 90% of India’s UPI transactions, have also begun incorporating DIP alerts. In some cases, this includes implementing transaction delays or requiring explicit user confirmation when payments involve flagged numbers. Several banks have also started using this shared data to strengthen their fraud detection systems.

FRI complements DoT’s mobile number revocation list (MNRL), which is regularly shared with banks and UPI providers. This list includes numbers disconnected for reasons such as involvement in cybercrime, failed re-verification, or breach of user limits. Often, such disconnected numbers have been linked to financial scams and phishing attempts.

The DoT said it remains committed to building a secure digital and telecom ecosystem. By combining cross-sector intelligence and advanced analytics, FRI enables swift and collaborative responses to emerging fraud patterns. The department continues to engage with digital payment firms and financial institutions to streamline integration and improve alert mechanisms.

Officials say the integration of FRI is expected to become a common safeguard across the financial industry, enhancing consumer trust and system resilience. With millions of Indians relying on digital payments every day, this measure could protect large sections of the population from falling prey to scams originating from fraudulent mobile numbers.

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