HT Bureau
GUWAHATI, Nov 3: Digital payments platform PhonePe has introduced a new security framework, ‘PhonePe Protect’, aimed at safeguarding users from fraudulent transactions by flagging potentially risky payments in real time.
The feature alerts users attempting to make payments to suspicious numbers with a ‘PhonePe Protect’ notification, warning them about potential risks.
It also provides insights into why certain transactions are declined for security reasons, thereby helping users make informed decisions.
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‘PhonePe Protect’ integrates a mechanism that identifies and blocks payments to mobile numbers flagged by the Department of Telecommunications (DoT) under its ‘Financial Fraud Risk Indicator (FRI)’ system.
Using this tool, PhonePe’s system intelligence detects risks during the payment process and intervenes in real time.
As an early adopter of DoT’s FRI feature, PhonePe has implemented proactive measures to enhance user safety.
Transactions linked to numbers marked as ‘Very High FRI’ are automatically declined with on-screen alerts, while those linked to ‘Medium FRI’ numbers trigger cautionary warnings before allowing the user to proceed.
The launch of ‘PhonePe Protect’ follows the company’s collaboration with the DoT at the 2025 India Mobile Congress (IMC), where the department recognised PhonePe for its efforts in combating cyber fraud through early adoption of the AI-driven FRI tool.
Anuj Bhansali, Head of Trust & Safety at PhonePe, said, “At PhonePe, payment security is paramount, and we have implemented several initiatives to safeguard our customers. ‘PhonePe Protect’ represents our vision of creating a financial ecosystem where security is seamlessly embedded into every transaction. This feature is more than just a security enhancement—it’s our commitment to building a safer digital payments ecosystem for India.”
The company said the feature is designed to minimise unintended transfers to fraudulent recipients, prevent illicit financial activity, and strengthen public trust in digital transactions.
