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In a move to strengthen digital transaction security and combat rising cyber fraud, the Indian government has rolled out a new safety mechanism—Financial Fraud Risk Indicator (FRI). If you've recently experienced delays or failures during UPI payments, it may not be a technical glitch but a deliberate security check designed to prevent financial fraud. This system flags risky mobile numbers and helps UPI platforms like PhonePe, Google Pay, and Paytm take appropriate action before a transaction is processed.

What is FRI and Why It Matters?

The Financial Fraud Risk Indicator (FRI) is a new initiative implemented by the Department of Telecommunications (DoT) as of May 21, 2025. With cybercrime on the rise, especially in the fintech sector, the FRI system classifies mobile numbers into three risk categories:

• Medium Risk

• High Risk

• Very High Risk

This classification is based on a number’s digital behavior and any history of involvement in fraudulent or suspicious activities.

The FRI score is shared through a Digital Intelligence Platform (DIP). This platform integrates inputs from the Indian Cybercrime Reporting Portal, the DoT’s Chakshu platform, and intelligence shared by banks and financial institutions. Together, this forms a robust dataset that evaluates whether a particular mobile number poses a fraud risk during digital transactions.

How Does FRI Work?

The Digital Intelligence Unit (DIU) under the DoT compiles a revocation list of mobile numbers that have been deactivated due to fraud, misuse, or violations like fake re-verifications and crossing usage limits.

If you try to make a UPI payment to one of these flagged numbers, your transaction might:

• Be slowed down deliberately

• Fail to process altogether

• Trigger an on-screen warning or alert

Rather than being a bug or technical fault, this could be a protective barrier put in place to prevent money from being sent to potential scammers.

Who’s Using FRI Already?

PhonePe has taken the lead as the first major UPI platform to implement the FRI system. The app now blocks transactions to mobile numbers labeled with a “very high” FRI risk rating. Moreover, it notifies users with real-time warnings through its PhonePe Protect feature, encouraging them to avoid risky transfers.

Google Pay and Paytm, two other top UPI apps in India, are also integrating FRI alerts into their systems. These apps are working with DIP to ensure users are warned or blocked when they attempt to transact with flagged numbers.

The goal? To create an extra layer of protection for millions of Indian digital users who rely on UPI for daily payments, from utility bills and shopping to business transactions.

Why You Should Stay Alert

If your UPI payment fails or gets delayed, don’t immediately blame your internet connection. Instead, consider that your payment app may be protecting you from a scam. Delays could signal that the recipient’s number has been flagged for fraud.

It’s wise to:

• Double-check the recipient's contact details

• Avoid repeated attempts to send money

• Reach out to customer support if you see a fraud alert

• Use verified numbers and trusted contacts only

A Step Towards Safer Digital Payments

With UPI becoming the backbone of India’s digital economy, protecting users from fraud has become a national priority. The FRI system marks a significant technological leap in how we handle digital payment security. By flagging high-risk numbers in real time, apps can stop fraud before it happens, saving users from financial losses.

This is a proactive shift from reactive cybersecurity—and it's a welcome change.