Context: The Department of Telecommunications (DoT) launched the Financial Fraud Risk Indicator (FRI) to combat mobile-based cyber fraud.
About Financial Fraud Risk Indicator (FRI):
- What is FRI?
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- FRI is a multi-dimensional analytical tool that flags mobile numbers based on their likelihood of being involved in financial fraud.
- Launched By: Developed and introduced by the Department of Telecommunications (DoT) under the Ministry of Communications.
- Objective: To provide advance intelligence to financial institutions and prevent cyber-enabled financial frauds.
- Key Features:
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- Risk Classification: Categorizes mobile numbers as Medium, High, or Very High risk.
- Integration with Digital Payments: Alerts banks and UPI platforms when a flagged number is involved in a transaction.
- Stakeholder Empowerment: Enables banks, NBFCs, and payment service providers to take additional customer protection measures.
- Proactive Cyber Shield: Acts as a pre-transaction validation tool to reduce fraud attempts.
- Real-time Application: Works in coordination with fraud detection systems and verification protocols.
Relevance in UPSC Exam Syllabus
- GS Paper 2 – Governance
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- Government Policies & Interventions: Covers initiatives for digital governance and citizen protection.
- Transparency & Accountability: Promotes data-driven regulation to counter fraud.
- GS Paper 3 – Cybersecurity & Technology
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- Challenges of Cyber Security: Addresses rising digital payment frauds and prevention tools.
- Science & Tech in Daily Life: Application of AI/analytics in public financial systems.
