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.