Financial Fraud Risk Indicator (FRI)
Source: PIB
GS III: Challenges to internal security through communication networks, role of media and social networking sites in internal security challenges, basics of cyber security
Overview
- News in Brief
- What is a Financial Fraud Risk Indicator?
- Indian Cybercrime Coordination Centre (I4C)
Why in the News?
Department of Telecommunications (DoT) welcomes the Reserve Bank of India’s (RBI) advisory, directing all Scheduled Commercial Banks, Small Finance Banks, Payments Banks, and Co-operative Banks to integrate the Financial Fraud Risk Indicator (FRI) developed by DoT into their systems.
News in Brief
- This is a watershed moment in the fight against cyber-enabled financial fraud.
- Also, a testament to the power of inter-agency collaboration in safeguarding citizens in India’s growing digital economy.
- It also underscores the strategic importance of automating data exchange between banks and DoT’s DIP through API-based integration.
- FRI enables real-time responsiveness and continuous feedback to further refine the fraud risk models.
What is a Financial Fraud Risk Indicator?
- Financial Fraud Risk Indicator (FRI), launched in May 2025 by DoT’s Digital Intelligence Unit (DIU).
- It is a risk-based metric that classifies a mobile number as having been associated with Medium, High, or Very High risk of financial fraud.
- This classification is an outcome of inputs obtained from various stakeholders, including reporting on the Indian Cyber Crime Coordination Centre (I4C’s) National Cybercrime Reporting Portal (NCRP), DoT’s Chakshu platform, and Intelligence shared by banks and financial institutions.
- It empowers stakeholders-especially banks, NBFCs, and UPI service providers, to prioritise enforcement and take additional customer protection measures in case a mobile number has high risk.
- The Digital Intelligence Unit (DIU) of DoT regularly shares the Mobile Number Revocation List (MNRL) with stakeholders, detailing numbers disconnected due to cybercrime links, failed re-verification, or misuse, many of which are tied to financial frauds.
How Financial Fraud Risk Indicator help Banks to prevent Cyber fraud?
- Banks and financial institutions can use FRI in real time to take preventive measures such as declining suspicious transactions, issuing alerts or warnings to customers, and delaying transactions flagged as high risk.
- The system’s utility has already been demonstrated with leading institutions such as PhonePe, Punjab National Bank, HDFC Bank, ICICI Bank, Paytm, and India Post Payments Bank actively using the platform.
- With UPI being the most preferred payment method across India, this intervention could save millions of citizens from falling prey to cyber fraud.
- The FRI allows for swift, targeted, and collaborative action against suspected fraud in both telecom and financial domains.
Indian Cybercrime Coordination Centre (I4C)
The Indian Cybercrime Coordination Centre (I4C) is a government initiative established by the Ministry of Home Affairs (MHA) in New Delhi to address cybercrime in India in a coordinated and effective manner. It serves as a framework and ecosystem for Law Enforcement Agencies (LEAs) to deal with cybercrime comprehensively.
Key points about I4C
- Purpose and Role
- I4C acts as the nodal point to curb cybercrime in the country.
- It focuses on improving coordination between various LEAs and stakeholders to tackle cybercrime issues for citizens.
- The centre provides a comprehensive approach to dealing with cyber threats.
- Components
- National Cybercrime Threat Analytics Unit (TAU): This unit analyzes cyber threats and trends to enhance prevention and response efforts.
- National Cybercrime Reporting Portal: Citizens can report cyber crimes through this portal, which facilitates efficient handling of complaints
- Platform for Joint Cybercrime Investigation Team: Enables collaboration among different agencies for effective investigations.
- Recent Initiatives
- National Conference on Cyber Safety & National Security: Held in June 2022, this conference aimed to enhance awareness and cooperation in combating cybercrime.
- Launch of Cyber Pravaha Newsletter: The first edition of the I4C newsletter, “Cyber Pravaha,” shares precise information related to cybercrime with law enforcement agencies and other stakeholders.
- Workshops with State/UT LEAs: Joint Cybercrime Coordination Teams (JCCTs) share experiences and challenges to prevent cybercrime
- Safe Practices to Prevent Cybercrime
- Avoid pop-ups, unknown emails, and suspicious links.
- Use strong password protection and two-factor authentication.
- Regularly install updates and back up your files.
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