Over 4 Lakh SIMs Blocked as Government Cracks Down on Digital Fraud

In a major move to fight digital scams, the Department of Telecommunications (DoT) has blacklisted 3 to 4 lakh SIM cards that were being used in fraudulent activities. This action was made possible by a new system called the Financial Risk Indicator (FRI), which was launched in May 2025.

What is the Financial Risk Indicator (FRI)?

The FRI is a digital system that identifies and flags high-risk mobile numbers. Every day, it detects around 2,000 phone numbers that may be involved in scams, such as fake job offers, investment frauds, or money-doubling schemes.

Using AI-based pattern matching, the system finds more suspicious SIMs linked to these fraudsters. The flagged numbers are then shared with banks, UPI platforms, and other financial institutions to stop any possible scams in real time.

Banks and UPI Apps Now Acting Faster

Thanks to FRI, the response time to block fraud transactions has dropped to just a few hours. The RBI has also asked all banks (including commercial, cooperative, and payments banks) to integrate FRI into their systems.

Apps and institutions like PhonePe, Paytm, GPay, HDFC Bank, ICICI Bank, and India Post Payments Bank are already using this tool to block suspicious activities before they happen.

Social Media Scams Under the Radar

To catch scammers on platforms like Instagram, X (Twitter), and Facebook, a tech company called MFilterIt has deployed AI-powered bots. These bots find fake investment offers and interact with scammers to collect details like UPI IDs and QR codes.

According to the company, each AI bot can detect around 125 scam accounts daily.

Why Does This Matter for You? 

With the rise in online trading and digital payments, it is important for users, especially demat account holders, to be cautious. Scammers often target people who invest online with fake schemes. Tools like FRI help prevent such frauds before investors lose their hard-earned money.

Other Government Efforts

• The Sanchar Saathi portal has blocked 3.58 million mobile devices involved in cybercrimes.
• Citizens can report fraud via the Chakshu feature on the same portal.
• AI tools like ASTR help detect fake documents used for buying SIMs.
• TRAI is also testing new systems to limit spam calls and messages.

Read more: List of Fake Websites and Apps of Listed Companies, Their Subsidiaries and Fintech Startups.

Conclusion

The FRI system is proving to be a powerful tool in India’s fight against digital fraud. By stopping scams early and improving coordination among telecom companies, banks, and payment apps, the government is helping protect ordinary users, including those with demat accounts, from falling into cyber traps.

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