Government’s Fraud Detection System Saves ₹400 Crore in Five Months, Blocks 6.5 Million Suspicious Transactions

New Delhi: A government-developed digital fraud detection system has helped prevent potential financial losses worth ₹400 crore within just five months of its launch, officials said. The Fraud Risk Indicator (FRI), designed by the Department of Telecommunications (DoT), is being hailed as a major technological milestone in India’s battle against cyber fraud.

Launched in May 2025, the FRI uses real-time analytics to flag or block suspicious digital transactions linked to phishing, impersonation, fake loan apps, digital arrest scams, and investment frauds. So far, it has detected over 6.5 million high-risk transactions, identifying nearly 5,000 suspicious mobile numbers every day. Each number is classified under medium, high, or very high-risk categories based on its activity pattern.

India’s rapidly expanding digital ecosystem — with more than 86% of households connected to the internet — has also led to a surge in cyber threats. Reported cybersecurity incidents more than doubled from 1.03 million in 2022 to 2.27 million in 2024, according to official data.

In response, the government has ramped up cybersecurity measures, allocating ₹782 crore for the sector in the 2025–26 Union Budget. Authorities have also blocked over 9.4 lakh SIM cards and 2.6 lakh IMEIs linked to organized cybercrime networks.

The FRI’s reach expanded recently when Google Pay integrated the tool into its system. Within just two weeks of the partnership, the platform reportedly prevented fraud losses worth ₹90 lakh, a senior DoT official confirmed.

Since its rollout, officials have restricted or frozen nearly 3 million bank accounts suspected of being involved in fraudulent activities. Between May and mid-September 2025 alone, the system helped block 4.8 million fake transactions, saving about ₹140 crore. By early October, savings had risen to ₹220 crore, and within another month, the total reached ₹400 crore.

“While no system can guarantee complete protection against scams or digital arrest frauds, the efficiency of FRI has improved remarkably,” a senior official said. “For instance, Paytm’s daily fraud alerts have increased from around 10,000 to nearly 30,000, reflecting better risk detection.”

Cybersecurity experts have praised the FRI as a crucial step in India’s zero-tolerance policy toward financial cybercrime, reinforcing public trust in the digital ecosystem. As India moves further toward a cashless economy, initiatives like the FRI are seen as key to ensuring a secure and transparent digital financial infrastructure.