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Financial Fraud Risk Indicator (FRI)

Context: 

Recently, the Department of Telecommunications (DoT) has launched “Financial Fraud Risk Indicator (FRI)” to empower financial institutions with advanced actionable intelligence for cyber fraud prevention. 

Financial Fraud Risk Indicator (FRI)

• FRI was launched as part of its Digital Intelligence Platform (DIP).

• The tool provides advanced, actionable intelligence to financial institutions for preventing cyber fraud.

• It will improve cyber protection and validation checks, especially when digital payments are made to mobile numbers flagged with fraud risk.

• FRI enables enhanced intelligence sharing with banks, UPI service providers and financial institutions, which in turn helps tackle cyber fraud and financial crime.

• It is a risk-based metric that classifies a mobile number in three categories: Medium, High, or Very High risk of financial fraud. 

• The move is set to help banks, non-banking financial companies, and UPI service providers prioritise enforcement and take additional customer protection measures in case a mobile number has high risk.

Digital Intelligence Platform (DIP)

• It is a secure and integrated platform created for curbing the misuse of telecom resources. 

• The DIP is developed by the Department of Telecommunications.

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