DoT Implements ‘Financial Risk Indicator’ to Combat Digital Scams

The Department of Telecommunications (DoT) has taken significant steps to combat fraud by blacklisting between 300,000 and 400,000 SIM cards associated with fraudulent activities. This initiative, part of the Financial Risk Indicator (FRI) launched in May, identifies around 2,000 high-risk phone numbers daily, potentially linked to scams. The system has proven effective in preventing substantial fraudulent transactions on popular UPI platforms like Paytm, GPay, and PhonePe, according to a senior DoT official.

Implementation of the Financial Risk Indicator

The Financial Risk Indicator (FRI) is a crucial tool in the fight against financial fraud. Launched in May, the FRI identifies approximately 2,000 high-risk telephone numbers each day, which may be involved in scams related to employment or investments. The DoT has utilized artificial intelligence (AI) to enhance the detection of suspicious SIM cards, allowing for more effective monitoring and prevention of fraud. This proactive approach has enabled UPI platforms to block numerous fraudulent transactions in recent weeks. The Reserve Bank of India has also encouraged banking institutions to integrate the FRI into their systems, significantly reducing the response time to fraudulent accounts to just a few hours.

Collaboration with Financial Institutions

Major financial institutions, including PhonePe, Punjab National Bank, HDFC Bank, ICICI Bank, and Paytm, are actively using the FRI to implement preventive measures against fraud. These measures include blocking suspicious transactions, alerting customers, and delaying high-risk transactions. The collaboration between the DoT and these institutions highlights a growing commitment to safeguarding consumers from financial scams. The effectiveness of the FRI is evident, as it has become a vital part of the digital security framework for these organizations.

AI Innovations in Fraud Detection

MFilterIt, a digital fraud prevention organization, has developed AI systems to identify and engage with fraudulent accounts on social media platforms like X, Instagram, and Facebook. Their AI program detects approximately 125 suspicious accounts daily, focusing on investment scams. By interacting with these accounts, the AI can extract critical information from fraudsters, such as UPI IDs or barcodes. This innovative approach enhances the overall strategy to combat cybercrime, which has surged despite the significant volume of digital payments in India.

Ongoing Efforts to Combat Cybercrime

The DoT’s Sanchar Saathi portal has reported blocking 3.58 million mobile devices linked to cybercrime. This portal includes a feature called Chakshu, allowing users to report fraudulent communications via calls, SMS, or WhatsApp. Additionally, the DoT employs AI tools like ASTR to detect fraudulent SIM registrations. The Telecom Regulatory Authority of India (TRAI) is also testing a Digital Consent Acquisition system to manage spam communications, further demonstrating the ongoing efforts to enhance digital security in the country.

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