{"id":53245,"date":"2025-12-23T12:25:22","date_gmt":"2025-12-23T06:55:22","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=53245"},"modified":"2025-12-23T14:27:53","modified_gmt":"2025-12-23T08:57:53","slug":"financial-fraud-risk-indicator","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/financial-fraud-risk-indicator\/","title":{"rendered":"Financial Fraud Risk Indicator (FRI)"},"content":{"rendered":"<h2><b>Financial Fraud Risk Indicator (FRI) Latest News<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The Department of Telecommunications (DoT) recently said that the financial fraud risk indicator (or FRI) has prevented potential losses of \u20b9660 crore across the banking ecosystem within six months of the rollout of this initiative.<\/span><\/p>\n<h2><b>About Financial Fraud Risk Indicator (FRI)<\/b><\/h2>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">It was launched in May <\/span><b>2025 <\/b><span style=\"font-weight: 400;\">by the <\/span><b>Department of Telecommunications (DoT\u2019s) Digital Intelligence Unit (DIU).<\/b><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">It is a <\/span><b>risk-based metric<\/b><span style=\"font-weight: 400;\"> that <\/span><b>classifies mobile numbers<\/b><span style=\"font-weight: 400;\"> into three categories: <\/span><b>Medium, High, and Very High<\/b> <b>Risk <\/b><span style=\"font-weight: 400;\">based on their <\/span><b>likelihood of involvement in financial fraud.<\/b><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The classification draws from a comprehensive analysis using <\/span><b>inputs from various platforms<\/b><span style=\"font-weight: 400;\">, including the<\/span><b> Indian Cybercrime Coordination Centre\u2019s National Cybercrime Reporting Portal (NCRP), DoT\u2019s Chakshu platform, <\/b><span style=\"font-weight: 400;\">and intelligence shared by <\/span><b>banks and financial institutions.<\/b><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">By flagging high-risk numbers early, the tool<\/span><b> enables banks,<\/b><span style=\"font-weight: 400;\"> non-banking financial companies<\/span><b> (NBFCs), <\/b><span style=\"font-weight: 400;\">and <\/span><b>UPI service providers <\/b><span style=\"font-weight: 400;\">to take appropriate <\/span><b>measures for customer protection <\/b><span style=\"font-weight: 400;\">and transaction validation.<\/span><\/li>\n<li style=\"text-align: justify;\"><b>How Advance Notification Helps Prevent Fraud?<\/b>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The <\/span><b>DoT\u2019s Digital Intelligence Unit (DIU) regularly disseminates the Mobile Number Revocation List (MNRL),<\/b><span style=\"font-weight: 400;\"> which details mobile numbers disconnected due to involvement in cybercrime, failed verification, or exceeding permissible usage limits.\u00a0<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">These numbers <\/span><b>often surface in financial fraud activities.<\/b><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Given that<\/span><b> fraudulent mobile numbers are often short-lived<\/b><span style=\"font-weight: 400;\"> and <\/span><b>verification processes can take time,<\/b><span style=\"font-weight: 400;\"> a preemptive indicator such as the <\/span><b>FRI becomes highly effective.\u00a0<\/b><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Thus, <\/span><b>as soon as a suspected mobile number is flagged <\/b><span style=\"font-weight: 400;\">by a stakeholder, it <\/span><b>undergoes multidimensional analysis<\/b><span style=\"font-weight: 400;\">, and <\/span><b>classifies it <\/b><span style=\"font-weight: 400;\">into Medium, High, or Very High financial risk associated with it.\u00a0<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">It then <\/span><b>shares this assessment<\/b><span style=\"font-weight: 400;\"> about the number immediately with all stakeholders <\/span><b>through DoT\u2019s Digital Intelligence Platform (DIP).\u00a0<\/b><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Banks and <\/span><b>financial institutions can use FRI in real time to take preventive measures<\/b><span style=\"font-weight: 400;\"> such as declining suspicious transactions, issuing alerts or warnings to customers, and delaying transactions flagged as high risk.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><b>Source: <\/b><strong><a href=\"https:\/\/telecom.economictimes.indiatimes.com\/news\/policy\/dots-fri-prevents-660-crore-in-potential-fraud-losses-in-just-6-months\/126120520\" target=\"_blank\" rel=\"nofollow noopener\">ET<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Financial Fraud Risk Indicator (FRI) is a risk-based metric that classifies mobile numbers into three categories: Medium, High, and Very High Risk based on their likelihood of involvement in financial fraud. Read more about Financial Fraud Risk Indicator (FRI), Purpose, Classification, Latest News.<\/p>\n","protected":false},"author":24,"featured_media":53288,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[4370,21,22,23],"class_list":{"0":"post-53245","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"tag-financial-fraud-risk-indicator-fri","9":"tag-prelims-pointers","10":"tag-upsc-current-affairs","11":"tag-upsc-prelims-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/53245","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=53245"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/53245\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/53288"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=53245"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=53245"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=53245"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}