Financial Fraud Risk Indicator
The Department of Telecommunications (DoT) has introduced the Financial Fraud Risk Indicator (FRI) to combat cyber fraud and financial crime. This initiative is part of the Digital Intelligence Platform (DIP) aimed at empowering financial institutions with actionable intelligence. The FRI categorises mobile numbers based on their risk of financial fraud, aiding in the prevention of cyber crime.
What is the Financial Fraud Risk Indicator?
The Financial Fraud Risk Indicator is a risk-based metric. It classifies mobile numbers into three categories – Medium, High, or Very High risk of financial fraud. This classification is derived from multiple data sources. Inputs come from the Indian Cybercrime Coordination Centre’s National Cybercrime Reporting Portal, the DoT’s Chakshu platform, and information shared by banks. This tool enables stakeholders to enhance customer protection measures effectively.
Importance of Advance Notifications
Advance notifications are crucial in combatting cyber fraud. The Digital Intelligence Unit (DIU) provides a Mobile Number Revocation List (MNRL) to stakeholders. This list includes mobile numbers disconnected due to cyber crime involvement or failed re-verification. The swift identification of high-risk numbers allows financial institutions to take immediate protective actions before fraudulent transactions occur.
Multi-Dimensional Analysis Process
When a mobile number is flagged, it undergoes a multi-dimensional analysis. This process assesses the risk associated with the number and classifies it accordingly. The FRI assessment is shared with all stakeholders in real-time, facilitating prompt action against potential fraud. This proactive approach reduces the window of opportunity for cyber criminals.
Industry Collaboration to Combat Financial Fraud
Major UPI platforms, including PhonePe, Paytm, and Google Pay, have begun integrating DIP alerts into their systems. These platforms represent over 90% of UPI transactions in India. For example, PhonePe has implemented features to decline transactions linked to Very High FRI mobile numbers. They also provide on-screen alerts to enhance user awareness and security.
Future of Cyber Security in Digital Payments
The integration of FRI into customer-facing systems is expected to become standard across the industry. This move will bring systemic resilience to India’s digital financial ecosystem. The DoT is committed to collaborating with financial institutions to optimise alert mechanisms and reduce response times. This collaboration will ensure a secure telecom environment for all citizens.
Role of the Department of Telecommunications
The DoT plays a very important role in preventing the misuse of telecom resources. By implementing technology-driven solutions, the department aims to create a secure telecom ecosystem. Continuous engagement with stakeholders will further enhance the effectiveness of the FRI and related initiatives.
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