India, Nov. 7 -- A government fraud-detection system designed to curb digital payment scams has helped the central government prevent potential losses of nearly Rs.400 crore within just five months of its launch, officials familiar with the matter said.

The Fraud Risk Indicator (FRI), developed by the Department of Telecommunications (DoT), has flagged or blocked more than 6.5 million suspicious transactions so far, either by generating alerts or declining them outright.

Launched in May 2025, the FRI employs real-time data analytics to detect high-risk transactions and accounts linked to fraudulent activities such as phishing, impersonation, fake loan applications, digital arrest rackets, and investment scams. The system categorises mob...