India Implements Real-Time Risk Scoring for Digital Payments to Combat Fraud
Real-time risk scores on cards for digital payments to track fraud
Business Standard
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The Indian Digital Payment Intelligence Corporation (IDPIC) is launching a real-time risk scoring system for digital payments to combat fraud, particularly targeting mule accounts used by cyber criminals. This initiative, part of a Reserve Bank of India project, aims to enhance fraud detection and prevention in the digital payments ecosystem.
- 01The risk scoring system is designed to identify and mitigate the use of mule accounts in digital transactions.
- 02IDPIC will maintain a registry of identified mule accounts, which will be shared among participating banks.
- 03The Digital Payment Intelligent Platform (DPIP) will utilize artificial intelligence to assess transaction risks.
- 04Banks will have the autonomy to determine their risk tolerance based on the assigned scores.
- 05The initiative is part of a broader project by the Reserve Bank of India's Innovation Hub to enhance the security of digital payments.
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The Indian Digital Payment Intelligence Corporation (IDPIC) is set to implement a real-time risk scoring system for digital payments, aimed at combating fraud associated with mule accounts. K Satyanarayana Raju, MD & CEO of IDPIC, emphasized that these accounts are often exploited by cyber criminals for illegal transactions, making it crucial to monitor and control their usage. This initiative is part of a project by the Reserve Bank of India (RBI) and will utilize a tool called mulehunter.ai to maintain a registry of suspected mule accounts, which will be shared among six participating banks. The risk scoring system will assess the risk level of both the transaction initiator and the beneficiary, categorizing them as low, medium, or high risk. Based on these scores, banks can decide how to process transactions—allowing low-risk transactions to proceed immediately, while subjecting medium and high-risk transactions to further scrutiny. The Digital Payment Intelligent Platform (DPIP), which employs artificial intelligence for risk assessment, is currently in the acquisition phase, with testing completed for its second operational phase.
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This initiative will enhance the security of digital transactions, potentially reducing the incidence of fraud and protecting consumers and businesses.
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