India Prevents ₹5,043 Crore in Suspected Cyber Fraud Transactions

India has prevented suspected cyber fraud transactions worth ₹5,043.7 crore over 15 months.

Such prevention was possible through a telecom-led risk system that allows banks and payment platforms to identify and intercept risky payments before money leaves a victim’s account, according to the government.

The system marks a shift from tracing stolen funds after a fraud to identifying suspicious transactions in real time. At the centre of the effort is the Financial Fraud Risk Indicator, or FRI, launched by the Department of Telecommunications in May 2025.

Risk Ratings Sent Directly to Banks and UPI Platforms

The FRI assigns mobile numbers medium, high or very high risk ratings. These alerts are shared directly with banks and UPI platforms, enabling them to warn customers or block payments considered risky.

Experts said one of the system’s key effects has been to make fraud operations more costly by creating an additional layer of scrutiny before suspicious transactions are completed. The government said the mechanism has helped banks and payment platforms prevent suspected fraudulent transactions worth ₹5,043.7 crore in 15 months.

Fraudsters May Shift to New SIM Tactics

Despite the system’s impact, fraudsters could seek ways to bypass mobile-number-based risk checks. They may turn to SIM cards obtained through fraudulent KYC processes or use virtual numbers.

An expert said criminals could also attempt to evade mobile-number risk scores by acquiring fresh or “aged” SIM cards. Such methods could allow fraudsters to operate with numbers that have not yet accumulated risk indicators within the system.

The possibility of such tactics highlights the challenge of maintaining effective risk detection as fraud methods change in response to new controls.

Proposal for Conducting Cyber Crisis Drill, Tabletop Exercise (TTEx) & CCMP Readiness Exercise

Focus Shifts Towards Preventing Fraud Before Payment

The telecom-led system represents an effort to intervene at an earlier stage of cyber fraud by sharing risk information with institutions that process digital payments.

Instead of relying solely on attempts to trace or recover money after a fraudulent transaction, the FRI allows banks and UPI platforms to act on risk alerts before a payment is completed.

With ₹5,043.7 crore in suspected fraudulent transactions prevented over 15 months, the system has emerged as a tool for real-time intervention, while the potential use of fraudulent KYC, virtual numbers and fresh or aged SIM cards remains a challenge for mobile-number-based fraud detection.