PhonePe Introduces ‘PhonePe Protect’ for Safer Digital Payments

PhonePe has launched ‘PhonePe Protect’, a new security feature designed to prevent users from falling victim to online payment fraud. The system identifies suspicious transactions and instantly alerts users before they transfer money to potentially risky accounts.

Real-Time Fraud Alerts for Safer Transactions

The PhonePe Protect feature actively scans transactions and displays an alert if the recipient’s mobile number is flagged as risky. The alert helps users avoid completing payments that could lead to financial loss. If a transaction is declined for security reasons, the app also explains why, helping users understand potential risks.

Powered by DoT’s Financial Fraud Risk Indicator

PhonePe has integrated the Department of Telecommunications’ Financial Fraud Risk Indicator (FRI) into its platform. This DoT tool classifies mobile numbers based on their fraud risk levels — from “Very High” to “Medium.”

For “Very High FRI” numbers, PhonePe automatically declines the transaction and displays a ‘PhonePe Protect’ alert. For “Medium FRI” ratings, users receive proactive warnings before they choose to continue with the payment.

Partnership Recognised at India Mobile Congress 2025

This initiative builds on PhonePe’s collaboration with the Department of Telecommunications, which was showcased at the India Mobile Congress (IMC) 2025. During the event, DoT recognised PhonePe for being an early adopter of the AI-powered FRI tool to help reduce cyber fraud in India’s fast-growing digital payment ecosystem.

Commitment to a Secure Digital Ecosystem

Speaking on the rollout, Anuj Bhansali, Head of Trust & Safety at PhonePe, said the company’s focus remains firmly on user protection. “Payment security is paramount, and we have implemented several initiatives to safeguard our customers,” he stated.

He added that PhonePe Protect reflects the platform’s vision to make security an integral part of every transaction. With over 61 crore users as of March 2025, PhonePe aims to build a digital ecosystem where trust and safety go hand in hand with convenience.

Building User Confidence in Digital Payments

The new feature not only blocks fraudulent transfers but also helps users make more informed decisions. By clearly explaining why a transaction was stopped, PhonePe Protect increases transparency and confidence in digital payments.

This step comes as India continues to witness a rise in UPI transactions and digital finance adoption. With cybercriminals targeting unsuspecting users through fake payment requests, initiatives like PhonePe Protect play a key role in preventing fraud and building user trust.

Empowering India’s Digital Economy

By embedding real-time fraud detection into its payment system, the company strengthens the overall digital infrastructure. The initiative shows how fintech companies can use AI and government-backed tools to secure the growing digital economy and protect millions of users across India.