Government Prevents ₹5,000 Crore in Cyber Fraud: How They're Stopping Payment Scams

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₹5,043.73 crore in potential financial losses has been prevented through a government-led initiative targeting cyber fraud, according to official reports.

Preventing Financial Losses Through FRI

The system, known as the Financial Fraud Risk Indicator (FRI), enables real-time assessment of mobile numbers for associations with fraudulent activity. Developed by the Department of Telecommunications, the framework integrates data from multiple sources including the Indian Cybercrime Coordination Centre’s National Cybercrime Reporting Portal, DoT’s Chakshu platform, and financial institutions.

How the FRI System Works

This information is shared with banks, UPI applications, and other entities to block high-risk transactions before they are finalized. The FRI categorizes mobile numbers into risk levels—Medium, High, or Very High—based on patterns linked to financial scams.

Impact of the FRI Initiative

Since its implementation, the tool has averted over ₹5,000 crore in fraudulent transactions as of August 2026. In August 2025, cumulative savings from the system stood at ₹139.16 crore, with the threshold surpassing ₹5,000 crore by the same month in 2026. Over ₹2,000 crore in suspected fraud losses were mitigated during this period.

The initiative represents a shift from reactive measures to proactive prevention, addressing the rapid movement of illicit funds through mule accounts.

Collaboration and Expansion Efforts

Financial institutions leverage FRI data during customer onboarding, transaction monitoring, and fraud detection processes. This allows for the interception of high-risk activities before funds are transferred. The system is part of the Department of Telecommunications’ Digital Intelligence Platform, which collaborates with key stakeholders such as the Reserve Bank of India, National Payments Corporation of India, and Securities and Exchange Board of India.

Expanding the FRI Network

Expansion efforts are underway to include securities-market intermediaries, insurance companies, and pension-sector entities. Citizen engagement plays a critical role in the system’s effectiveness. Reports of suspicious communications submitted through the Sanchar Saathi program and Chakshu facility contribute to risk assessments.

Public Awareness and Reporting

The government urges individuals to heed alerts from banking and UPI platforms and verify transaction details independently. Data from users, financial institutions, and cybercrime reporting systems helps identify mobile numbers linked to fraudulent schemes.

Support for Fraud Victims

In cases where fraud has already occurred, victims are advised to contact the national cybercrime helpline at 1930 or submit reports via the National Cybercrime Reporting Portal. Timely intervention is crucial, as illicit funds can traverse multiple accounts within minutes, complicating recovery efforts.

Training and Sector Involvement

Over 1,600 organizations are currently part of the Digital Intelligence Platform, with the Department of Telecommunications conducting training sessions for more than 1,500 banks, financial institutions, and regulators on FRI integration and risk signal utilization.

Conclusion: A Resilient Financial Ecosystem

The framework underscores the government’s emphasis on digital security, combining technological tools with public awareness to combat evolving cyber threats. By centralizing risk assessment and fostering collaboration across sectors, the initiative aims to create a resilient financial ecosystem.