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Govt fraud detection system averts ₹400 crore digital scam losses in 5 months
The Fraud Risk Indicator, developed by the Department of Telecommunications, has flagged or blocked more than 6.5 million suspicious transactions so far.
A government fraud-detection system designed to curb digital payment scams has helped the central government prevent potential losses of nearly ₹400 crore within just five months of its launch, officials familiar with the matter said.
The Fraud Risk Indicator (FRI), developed by the Department of Telecommunications (DoT), has flagged or blocked more than 6.5 million suspicious transactions so far, either by generating alerts or declining them outright.
Launched in May 2025, the FRI employs real-time data analytics to detect high-risk transactions and accounts linked to fraudulent activities such as phishing, impersonation, fake loan applications, digital arrest rackets, and investment scams. The system categorises mobile numbers as medium, high, or very high risk for financial fraud, identifying around 5,000 dubious numbers every day.
The initiative comes as India’s digital ecosystem continues to grow rapidly, with over 86% of households now connected to the internet. Reported cybersecurity incidents more than doubled from 1.029 million in 2022 to 2.268 million in 2024, prompting the government to intensify efforts to combat online fraud. In the 2025–26 Union Budget, ₹782 crore was earmarked for cybersecurity measures. Authorities have also blocked over 9.42 lakh SIM cards and 2.63 lakh IMEIs linked to cybercrime networks.
“While we cannot guarantee that no money can be transferred through any bank or UPI account in digital arrest cases, the effectiveness of this system is steadily increasing. From generating 10,000 alerts daily, Paytm alone now generates nearly 30,000 alerts each day,” an official said on condition of anonymity.
Between May and mid-September, the system prevented more than 4.8 million fraudulent transactions, saving around ₹140 crore. By the first week of October, the amount saved had risen to ₹220 crore, with 5.5 million transactions flagged or stopped. In just over a month since, that figure has nearly doubled to ₹400 crore.
Since its rollout, authorities have restricted or frozen nearly 3 million bank accounts suspected of being used in fraudulent operations. The latest milestone follows Google Pay’s integration with the FRI system last month, making it one of the last major payment platforms to join. At the time, a DoT official said the integration had already prevented losses worth nearly ₹90 lakh within just two weeks.
