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PhonePe has introduced a new security feature, ‘PhonePe Protect,’ to alert users to fraudulent money transfers. The feature safeguards users when they try to send money to suspicious numbers and blocks high-risk transactions in real-time.
‘PhonePe Protect’ uses data provided by the Department of Telecommunications, DoT, through its FRI-a tool that raises a red flag for phone numbers linked with fraudulent activity.
If a number is categorized as ‘Very High Risk’, the payment is not executed, but the user is warned on-screen, explaining the reason. For ‘Medium Risk’ numbers, the app tells the users with a warning message and then goes on with the payment. This allows users to make informed decisions before the money is passed to potentially unsafe situations.
The company stated that the transactions are continuously under the surveillance of in-app intelligence, which automatically detects anomalies and intervenes promptly, even when risk signs are subtle.
The introduction of this feature coincides with a surge in scams associated with digital payment methods throughout India, where con artists often impersonate businesses or government officials to deceive users.
PhonePe has assured that ‘PhonePe Protect’ aims to minimize such incidents and increase user confidence by providing real-time visibility into why a transaction was declined.
The company further claimed it is among the first fintechs in the country to deploy the DoT’s AI-powered fraud detection tool on its platform. The partnership was highlighted at the 2025 India Mobile Congress, wherein the DoT had acknowledged PhonePe for being an early adopter of the FRI framework.
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Anuj Bhansali, Head of Trust & Safety at PhonePe, stated that the feature underscores the company’s long-term commitment to customer protection.
“‘PhonePe Protect’ represents our vision of creating a financial ecosystem where security is seamlessly embedded into every transaction,” Bhansali stated. “We have developed a robust security system that shields our user base (which was over 61 crore as of March 31, 2025) from cyber threats in real-time.”
The fintech company stated that the feature extends beyond being just a security tool, reflecting its commitment to building a safer digital payments ecosystem in India while ensuring a secure and seamless payment experience for users.
As of March 2025, the total picture shows that the number of registered users stood at over 61 crore, while the merchant network comprised 4.4 crore outlets. The fintech giant aims to establish a new benchmark for digital security in India through the introduction of ‘PhonePe Protect’, which utilizes AI and government-backed intelligence to make the country's payments ecosystem not only safer but also more transparent.
