How PhonePe and Paytm Safeguard Millions: A Fraud Prevention Revolution
PhonePe and Paytm, utilizing a platform by the Department of Telecom, helped prevent financial fraud of Rs 200 crore. They blocked 48 lakh suspicious transactions and froze over 10 lakh accounts. The Fraud Risk Indicator platform is mainly used in banking, and its broader adoption could enhance its efficacy.
- Country:
- India
Payment applications PhonePe and Paytm have played a pivotal role in preventing potential financial frauds amounting to Rs 200 crore, thanks to the Fraud Risk Indicator (FRI) platform established by the Department of Telecom (DoT). A senior official from Walmart disclosed this information during a presentation before Prime Minister Narendra Modi at the India Mobile Congress conference.
PhonePe co-founder Rahul Chari elaborated that these apps have frozen over 10 lakh accounts and stopped more than 48 lakh suspicious transactions in their tracks. The DoT has thereby saved consumers a potential financial loss of more than Rs 200 crore within just a few months prior to its launch.
Currently used mainly in the banking and payments sectors, the FRI platform is envisioned for broader implementation. Chari emphasized the importance of onboarding every governmental and private entity that relies on mobile numbers for financial identity on this platform, aiming to make it one of the world's leading cyber fraud detection systems.
(With inputs from agencies.)
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