Union Government Deploys AI App to Fight Financial Fraud and Enhance Digital Security

Union Government Launches AI Application to Combat Financial Fraud

The Union Government has introduced an Artificial Intelligence (AI) application aimed at helping users avoid financial risks online. This new tool includes a feature called the Financial Fraud Risk Indicator (FRI), developed to raise awareness about fraudulent transactions, spam, and scam calls.

The FRI app profiles individuals based on their historical activities and complaints reported by police, banks, and other institutions. Currently, data from 500 institutions are integrated into the digital intelligence platform, which categorizes users into high, medium, or very high fraud risk levels.

A pilot project involving PhonePe and SBI blocked around 200,000 high-risk transactions within two weeks. The app alerts users during transactions with warnings like “this person is highly likely a fraud,” encouraging verification before proceeding. This AI-powered app reportedly operates with 99% accuracy and is set to be deployed across all financial institutions. Security reviews occur every two weeks to maintain system integrity.

Sanchar Saathi App for Spam and Fraud Call Management

In addition to the FRI app, the government launched the Sanchar Saathi mobile app, currently available in English with plans for 20 other languages. This app helps users block spam calls, locate lost phones, and report fraud calls, enhancing overall telecom security.

Advancements in National Telecommunications

The government has made significant efforts to improve telecommunications infrastructure over the past three years, focusing on connectivity expansion from high-speed cable networks to telecom towers in remote areas.

One major initiative is the revival of Bharat Sanchar Nigam Limited (BSNL). The company has transitioned from 2G and 3G technology to launching indigenous 4G services, following directives from Prime Minister Narendra Modi. Unlike private operators who rely on imported technology for 4G and 5G, BSNL’s 4G uses homegrown technology developed through a collaboration between Tejas Networks, Tata Consultancy Services (TCS), and the Centre for Development of Telematics (C-DOT).

This collaboration involves C-DOT writing the software, Tejas Networks creating hardware, and TCS handling integration. BSNL is executing the deployment, aiming to achieve in two to three years what took private players decades. Over 100,000 4G towers were installed in the past year to support this effort. Additionally, ₹600 crore worth of new batteries, generators, and equipment have been procured as part of the rejuvenation plan.

Broadband Expansion Through BharatNet

The government has tendered 16 packages to lay cables worth ₹1.4 lakh crore across India under the BharatNet project. Work has begun in half of the circles, aiming to provide high-speed Internet and TV services at affordable rates of ₹400 per household, with an upfront subsidy of ₹10,000.

These steps collectively strengthen India’s financial and telecommunication security and infrastructure, supporting safe digital transactions and improved connectivity nationwide.