1.
Background
India’s rapid digital transformation has led to an unprecedented rise in financial fraud via spam calls and messages, with
incidents increasing by 35% in the past year. With 1.2 billion mobile users, an estimated 480 million people receive scam
calls/messages annually, and 9.6 million fall victim, leading to a financial loss of ₹48,000 crore (~$6B) annually.
Fraudsters exploit regulatory loopholes, advanced technology, and social engineering tactics to bypass traditional security
measures. The growing sophistication of AI-powered scams, number spoofing, phishing links, and UPI fraud has made it
imperative to establish a comprehensive, intelligence-driven, and enforcement-backed framework to protect citizens and
strengthen India’s digital security.
2. The Challenge: Systemic Gaps in Financial Fraud Prevention
Despite existing regulations and consumer protections, the current anti-fraud ecosystem faces several critical gaps:
A. Fraud Prevention Challenges
Weak SIM KYC Norms & Spoofing Techniques – Fraudsters use fake identities to obtain SIMs, bypassing existing telecom
.
Lack of AI-Based Filtering – No real-time AI-powered fraud call/message blocking system at the telecom level.
B. Detection & Consumer Protection Gaps
No Real-Time Scam Alerts – Users lack immediate fraud warnings, leading to high scam conversion rates.
Absence of Transaction Risk Scoring – UPI and banking apps do not have AI-based dynamic fraud detection, making
C. Enforcement & Reporting Inefficiencies
Fragmented Fraud Reporting Mechanisms – Multiple agencies (bank helplines, cybercrime portals, police stations) create
confusion, leading to underreporting.
Delayed Prosecution & Lack of Cross-Border Coordination – Fraudsters exploit legal loopholes and offshore networks to
escape enforcement.
3. Stakeholders: A Unified Multi-Sectoral Response
A. Government & Regulatory Bodies
Ministry of Electronics & IT (MeitY) , TRAI & Department of Telecom (DoT) , Reserve Bank of India (RBI) & NPCI and Law
Enforcement Agencies (CBI, Cybercrime Cells, State Police)
B. Industry & Technology Players
Telecom Providers (Jio, Airtel, Vi, BSNL) , UPI & Banking Platforms (Google Pay, PhonePe, Paytm, NPCI, Banks) – Real-
time fraud alerts, . Tech Companies (Google, Meta, WhatsApp, Truecaller)
C. Public & Consumer Advocacy Group
Digital Consumers and Media & Civil Society – Driving public awareness campaigns on fraud prevention.
To create a nationally coordinated fraud prevention ecosystem, all stakeholders must work in sync to eliminate financial fraud
at its root.
4. Implementation Strategy: A Technology-Driven, End-to-End Solution
To prevent, detect, and respond to financial fraud, the BHARAT SURAKSHA framework will follow a three-tiered approach:
A. Prevention: Strengthening Consumer Protection & Eliminating Fraud Sources
✔ National AI-Based Call & SMS Filtering System: Telecom providers deploy real-time AI-powered fraud detection to
dynamically blacklist scam numbers (TRAI, Telcos).
✔ Stronger SIM KYC & Biometric Authentication: Implement Aadhaar-linked SIM registration, fraudster blacklisting, and
automated fraud SIM deactivation (DoT, MeitY).
✔ Mandatory Scam Detection Pop-Ups in Banking Apps: UPI & payment platforms warn users of high-risk transactions
before they confirm payments (RBI, NPCI).
✔ Digital Awareness Drive via Banking & Telecom Networks: Mass-scale fraud prevention campaigns via SMS, push
notifications, and social media (MeitY, RBI, Banks).
B. Detection: AI-Powered Fraud Monitoring & Real-Time Risk Alerts
✔ Caller ID Authentication & Fraud Voice Recognition: AI-powered caller verification system to flag spoofed numbers in real-
time (WhatsApp, Truecaller, Telecoms).
✔ Automated Fraudulent Link & Phishing URL Blocking: AI-driven auto-blocking of phishing links in SMS, email, and
WhatsApp messages (Google, MeitY).
✔ Transaction Risk Scoring & AI-Based Fraud Blocking: Banking apps use AI-powered fraud detection models to identify
suspicious transactions and trigger user alerts (NPCI, Banks, Payment Apps).
✔ Unified National Fraud Reporting Platform: Establish a single, government-backed fraud reporting system via WhatsApp,
112, and banking apps (RBI, Law Enforcement).
C. Enforcement & Legal Action: Strengthening Prosecution & Cybercrime Response
✔ Fast-Track Digital Fraud Courts: Set up specialized courts for quick prosecution of financial fraud cases (Judiciary, RBI).
✔ Cyber Fraud Task Force: Form an inter-agency task force to investigate large-scale fraud networks, powered by AI-driven
data analysis (CBI, Cybercrime Cells).
✔ Cross-Border Cybercrime Enforcement: Strengthen India’s international cybersecurity cooperation for tracking
fraudsters operating offshore (MEA, Interpol).
