New Delhi – A government-developed digital fraud detection system has helped avert potential financial losses worth ₹400 crore within just five months of its launch, according to officials familiar with the matter. The Fraud Risk Indicator (FRI), designed by the Department of Telecommunications (DoT), is being hailed as a key technological milestone in India’s fight against cyber fraud.
Since its rollout in May 2025, the FRI has flagged or blocked over 6.5 million suspicious transactions, using real-time analytics to identify high-risk accounts and digital activities linked to phishing, impersonation, fake loan apps, digital arrest rackets, and investment scams. The system categorizes mobile numbers as medium, high, or very high risk and currently identifies nearly 5,000 suspicious numbers every day.
A Growing Digital Economy, Rising Threats
With over 86% of Indian households now connected to the internet, the country’s digital landscape is expanding rapidly — but so are cyber threats. Reported cybersecurity incidents have more than doubled, from 1.029 million in 2022 to 2.268 million in 2024.
To counter this surge, the government allocated ₹782 crore for cybersecurity measures in the 2025–26 Union Budget. Authorities have also blocked over 942,000 SIM cards and 263,000 IMEIs linked to organized cybercrime networks.
Integration with Payment Platforms Strengthens Impact
The system’s reach has expanded further with Google Pay becoming the latest major digital payment platform to integrate with FRI. Within just two weeks of integration, the tool prevented fraud losses worth nearly ₹90 lakh, a senior DoT official confirmed.
Since its implementation, authorities have restricted or frozen nearly 3 million bank accounts suspected of being involved in fraudulent operations. Between May and mid-September, the FRI helped block 4.8 million fake transactions, saving approximately ₹140 crore. By early October, that figure had risen to ₹220 crore, and within the following month, total savings nearly doubled to ₹400 crore.
Building a Safer Digital Ecosystem
A senior official noted that while no system can guarantee total immunity from digital arrest or scam-related fund transfers, the efficiency and responsiveness of FRI have improved sharply. “Paytm, for instance, has gone from generating 10,000 alerts daily to nearly 30,000,” the official added.
Experts view the FRI as a crucial component of India’s zero-tolerance approach to financial cybercrime, strengthening public trust in the country’s digital economy. As India transitions deeper into a cashless ecosystem, the system represents a significant step toward building a secure and transparent digital financial infrastructure.
