Telecom risk alerts help banks prevent suspected fraud losses

Background

Fraudsters can persuade people to transfer money through calls or messages. Once transferred, money can move quickly through several accounts, making recovery difficult. The telecom department already shared lists of disconnected mobile numbers with financial institutions. But a suspicious number can be misused before verification and disconnection are complete. The Financial Fraud Risk Indicator addresses this delay by sharing an earlier risk assessment. A bank can then check a proposed payment against the warning and take preventive action. The risk alert supplements checks on existing payment services; it does not replace banking with a new payment network.

How it developed

1. May 2025: earlier fraud-risk alerts introduced
   How it started

   An earlier warning fills the gap before number disconnection

   In May 2025, the telecom department introduced FRI to help financial institutions act on suspicious mobile numbers sooner. Fraudsters can use a number for only a few days, while full verification takes time. FRI combines reports and other intelligence to assess risk before that process finishes. The assessment is shared through the Digital Intelligence Platform. Early adopter PhonePe used very-high-risk alerts to decline linked transactions and show a warning. Other responses included payment delays and customer confirmation. These checks changed how existing services screened payments, rather than creating a new way to send money.

   Department of Telecommunications / PIB
2. 30 June 2025: RBI advises bank integration
   Official response

   RBI advises banks to add the alerts to their checks

   On 30 June 2025, the Reserve Bank of India advised banks to integrate FRI into their systems. The advisory covered scheduled commercial banks, small finance banks, payments banks and cooperative banks. Integration lets a bank receive risk information while screening transactions. Depending on the warning, a bank can delay or decline a suspicious payment, or alert the customer. The advisory sought wider use of the existing tool; it did not establish that every bank had completed integration.

   Department of Telecommunications / PIB
3. 8 September 2026: results through August reported
   New fact

   The department reports cumulative prevention above ₹5,000 crore

   On 8 September 2026, the telecom department put suspected losses prevented through FRI at ₹5,043.73 crore by August 2026. The figure covers the period since the tool’s May 2025 introduction, not a single month. Banks and payment platforms use the warnings to intervene before a transfer causes loss. The department is progressively extending the approach to securities, insurance and pension-sector institutions. That expansion does not mean every institution already uses the alerts. Customers should independently verify payment details when a warning appears.

   Department of Telecommunications / PIBDD India

Key terms