UPI Users Beware: Govt Launches System to Flag and Block Payments to Fraudulent Numbers

In response to the rising threat of cybercrime, the Department of Telecommunications (DoT) has introduced the Financial Fraud Risk Indicator (FRI) — a system designed to identify risky phone numbers and block UPI transactions to such numbers.

The FRI, a key feature of the government’s Digital Intelligence Platform (DIP), aims to support banks, UPI platforms like PhonePe, Google Pay, and Paytm, as well as other financial institutions, in flagging suspicious transactions before they occur.

This initiative is particularly crucial today, as nearly 90% of digital transactions in India are conducted through UPI.

The FRI system gathers data from multiple sources — including the National Cybercrime Reporting Portal, the DoT’s Chakshu platform, where citizens report suspected fraud communication, and intelligence inputs from banks — to identify mobile numbers linked to cybercrime, failed identity verification, or suspicious activity.

Each mobile number is assigned a risk category: Medium, High, or Very High.

If a UPI user attempts to send money to a number marked as Very High Risk, the transaction is blocked and a warning is displayed.

For numbers labeled as Medium or High Risk, users receive a real-time alert and may need to manually approve the transaction. In some cases, the payment may be delayed for additional verification.

These real-time alerts are designed to enhance user safety and prevent financial fraud.

To maintain the system’s effectiveness, the DoT’s Digital Intelligence Unit regularly provides a Mobile Number Revocation List (MNRL) to financial institutions. This list contains numbers that have been deactivated due to their involvement in scams, identity theft, or other regulatory violations.