Google Pay's Delay in Fraud Risk Indicator Integration Puts Millions of UPI Users at Risk
In a significant development impacting digital payments security in India, Google Pay has yet to integrate the government-mandated Fraud Risk Indicator (FRI) system into its UPI platform. This delay leaves approximately one-third of the country's UPI users vulnerable to financial scams, raising concerns against the backdrop of rising cyber fraud incidents.
Government's Mandate and Competitor Progress
The Department of Telecommunications (DoT) in India mandated the adoption of the FRI system for all banks and UPI players as of June 2025. This advanced fraud prevention tool categorizes mobile numbers into varying risk levels—medium, high, and very high—based on their potential for involvement in financial fraud. Transactions involving medium-risk numbers prompt warning pop-ups for users, while those linked to high or very high-risk numbers may be outright blocked.
Competitors PhonePe and Paytm have swiftly implemented FRI with remarkable results. Within two months, PhonePe prevented fraud losses amounting to ₹125 crore, and Paytm blocked ₹68 crore in suspicious transactions. Both companies showcased these achievements to Prime Minister Narendra Modi at the India Mobile Congress on October 8, 2025, demonstrating the system’s effectiveness in safeguarding users.
Google's Response and Reasons for Delay
Google Pay, which holds about 35% of the UPI transaction market share, cited longer development timelines attributed to its multinational corporate structure for the delay. While more than 50 banks and UPI participants implemented FRI within two months, Google's integration efforts lag behind.
Google's Rajesh Ranjan confirmed ongoing discussions with the DoT about incorporating FRI, simultaneously defending Google Pay's existing AI-based fraud prevention system, DigiKavach. However, internal inconsistencies have emerged, with some Google representatives claiming FRI integration was already complete, only to be contradicted by others, creating confusion around its true status.
Rising Cybersecurity Concerns in India
The urgency of integrating FRI is underscored by the sharp rise in cybersecurity incidents in India, which more than doubled from 1.029 million in 2022 to 2.268 million in 2024. With an estimated 86% of Indian households now connected to the internet and UPI payment volumes surging, regulators stress the critical importance of enhanced fraud protection.
The Reserve Bank of India has hailed the FRI integration as a watershed moment in combating cyber-enabled financial frauds. Google Pay, as the second-largest UPI platform processing over 7 billion transactions worth ₹8.83 lakh crore in August 2025, plays a major role in this ecosystem.
Government Actions and Commitment
The government has taken robust steps to curtail cyber fraud, including blocking over 942,000 SIM cards and 263,348 IMEIs associated with fraudulent activities. The DoT is committed to building a "Secure Sovereign Svadeshi UPI ecosystem" to protect users across the digital payments landscape.
Conclusion
The delayed integration of the Fraud Risk Indicator by Google Pay represents a significant security gap in India's rapidly growing UPI ecosystem. While competitors have embraced the system with proven success, Google Pay’s lag has sparked concerns amidst increasing cyber threats. Swift and transparent implementation of FRI by Google Pay is now critical to safeguard millions of users from potential financial scams and ensure the integrity of India's digital payment infrastructure.
This blog highlights the importance of the Fraud Risk Indicator system in India’s fight against financial fraud and the current challenges faced by Google Pay amidst rising cybersecurity concerns in the country. It combines detailed information on government mandates, competitor achievements, Google’s response, and the broader cybersecurity context to provide comprehensive coverage of the issue.