UPI Transactions Get Safer: How Financial Fraud Risk Indicator Works

UPI Transactions Get Safer: There’s a large announcement for users of India’s digital payments. The Department of Telecommunications (DoT) has introduced a new security system that will cap UPI payments on specific mobile numbers tagged with financial fraud risks. The move is aimed at enhancing cyber security and ending fraud in digital payments.

How the Financial Fraud Risk Indicator (FRI) System Works
The Financial Fraud Risk Indicator (FRI) is a risk assessment system that categorizes mobile numbers into three grades:

Medium Risk

High Risk

Very High Risk

These segmentations are created through the Digital Intelligence Platform (DIP), which gathers data from portals like the National Cybercrime Reporting Portal (NCRP) and DoT’s Chakshu portal. The moment a mobile number has been recognized as suspicious, it is marked accordingly and such data are disseminated to banks, NBFCs, and UPI service providers to enable them to take appropriate Marches.

Impact on Google Pay and Paytm Users

PhonePe has already implemented this system in the form of its PhonePe Protect feature, which blocks transactions from highly risky numbers and flags medium-risk numbers before payment. Google Pay and Paytm will also implement such measures in the near future.

How Banks and NBFCs Will Gain
Apart from UPI platforms, banks and non-banking financial institutions (NBFCs) will also receive fraud risk information. This will enable them to:

Block transactions with suspicious numbers.

See the Mobile Number Revocation List, which stores numbers deactivated due to fraud concerns

Enhance security features to protect users against financial fraud

Enhancing Digital Payment Security

The DoT hopes that the step will make digital payments safe in India and even more reliable. Through the detection and capping of fraudulent numbers, the system aims to put a curb on cybercrime gangs exploiting UPI platforms and protecting users’ hard-earned money.

Also Read: Google Pay vs PhonePe vs Paytm: Which UPI App Gives the Most Rewards?

After the implementation of the FRI system, even online payment wallets like Google Pay, Paytm, and PhonePe are making special efforts to enhance security. While the changes are being implemented, users can expect a safer. And more open digital payments experience that guarantees that the possibilities of financial fraud are circumvented.