New Delhi: In response to the sharp rise in digital payment frauds, the government, in collaboration with leading UPI platforms such as Google Pay, PhonePe, and Paytm, is introducing a real-time fraud detection mechanism referred to as a “payment tripwire.”
This AI-driven system will monitor all UPI transactions, regardless of amount and apply risk-based scrutiny to flag suspicious activity. It evaluates behavioural and device-level signals such as the age of sender or receiver, account activity, call logs, contact list overlaps, past fraud records, and unusual transaction timings. Transactions identified as high-risk may be delayed, blocked, or require user re-confirmation.
The initiative builds upon the Financial Fraud Risk Indicator launched by the Department of Telecommunications (DoT) and integrated into the Digital Intelligence Platform (DIP). This tool helps assess risk levels (medium to very high) in real time, enabling payment platforms to take informed actions before processing transactions.
Platforms like PhonePe have already implemented similar safeguards, including features like “Protect,” which block transactions linked to flagged phone numbers. These efforts are further supported by DoT’s Digital Intelligence Unit data.
While early results indicate a reduction in fraud attempts, experts suggest additional layers such as behavioural biometrics to enhance security. Techniques analyzing typing speed, swipe patterns, or finger pressure after PIN entry could help authenticate users more accurately and reduce account takeovers.
With UPI accounting for over 80% of India’s digital transactions and reported frauds reaching Rs 36,014 crore in FY25, a coordinated industry approach to payment security has become essential.
Also Read: NPCI Sets Daily Limits on UPI Balance Checks, Revises AutoPay Rules Effective August 1
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