PhonePe Rolls Out ‘PhonePe Protect’ to Help Prevent UPI Scam Payments

PhonePe has now launched a new feature called ‘PhonePe Protect’, which aims to reduce online scams and fraud cases in India. With PhonePe Protect, if a user attempts to make a payment to a suspicious mobile number, the app will alert them before the payment goes through. It will warn users about potential risks and display a ‘PhonePe Protect’ alert on the screen. The feature also provides clarity on why certain transactions may be declined for security reasons.

How does it work?

PhonePe Protect uses the Financial Fraud Risk Indicator (FRI) system from the Department of Telecommunications (DoT). This system helps identify mobile numbers that have been flagged for potential fraud or high-risk behaviour.

PhonePe’s intelligence system analyses this in real time while you are trying to pay. If the system detects a high-risk number, the payment will be declined, and a warning message will pop up.

For numbers classified as ‘Very High FRI’ — PhonePe automatically blocks the transaction and shows an alert.

For ‘Medium FRI’ risk numbers — PhonePe still allows the payment, but shows a proactive warning message before you proceed, so users can think twice.

This move could help reduce scam payments across UPI and make users more aware before sending money to suspicious accounts.