Thecsrjournal App Store
Thecsrjournal Google Play Store
July 4, 2025

Government Rolls Out AI Tool to Safeguard Citizens from Online Financial Threats

The Union Government has introduced a new Artificial Intelligence (AI)-powered application aimed at protecting citizens from online financial risks. As the country’s digital economy expands and more people rely on online banking and payments, the need for strong safeguards against cyber frauds has become more urgent than ever.

The App

This AI-based app has been developed with support from the Department of Telecommunications (DoT) and the Reserve Bank of India (RBI). It uses advanced machine learning techniques to monitor and analyse digital transactions, helping to spot suspicious activities in real time. The app’s main feature, called the Financial Fraud Risk Indicator (FRI), checks mobile numbers against a vast database and classifies them based on their risk of being linked to financial fraud. Data for this comes from the National Cybercrime Reporting Portal, the DoT’s Chakshu platform, and inputs from banks and financial institutions.

Whenever a user tries to make a digital transaction, the app can immediately alert both the bank and the customer if the recipient’s number is flagged as risky. This allows banks to block or delay the transaction, preventing possible loss of money. According to officials, the system has already helped stop nearly two lakh risky transactions within the first fortnight of its launch, showing its effectiveness in real-world situations.

The government’s new app is part of a larger plan to tackle cyber-enabled financial frauds. Union Home Minister Amit Shah has highlighted the importance of using AI to identify and close ‘mule’ accounts, which are often used by fraudsters to move stolen funds. The RBI’s own AI tool, MuleHunter.AI, is also being used to study transaction patterns and catch such accounts early.

Banks across the country are being asked to adopt these AI tools, train their staff in fraud detection, and educate customers about common online scams. The aim is to create a strong and united defence against cyber threats by sharing information and best practices throughout the financial sector.

With India now among the world’s top digital economies, this new AI app is expected to make online transactions much safer for everyone. By embracing the latest technology, the government hopes to protect people’s hard-earned money and build greater trust in digital payments.

Latest News

Popular Videos