PhonePe rolls out ‘PhonePe Protect’ tool to block payments to government-flagged fraud numbers: Here’s how it works

PhonePe has introduced ‘PhonePe Protect’, a new security feature to help users avoid fraudulent transactions. This tool warns users if they are about to send money to a suspicious number and shows a ‘PhonePe Protect’ alert during such transactions.

If a transaction is blocked for security reasons, the app will also explain why. This system uses data from the Department of Telecommunications (DoT) through its ‘Financial Fraud Risk Indicator (FRI)’ feature. It can detect and stop payments to phone numbers marked as risky by the DoT.PhonePe will automatically block payments to numbers labelled as ‘Very High Risk’ and show a warning message on screen. For ‘Medium Risk’ numbers, it gives users a caution message before allowing the payment.

PhonePe is one of the first companies to use this DoT feature.PhonePe Protect will help prevent users from accidentally sending money to fraudsters and stop illegal money transfers. It will also build user trust by clearly explaining why a transaction was blocked for security reasons.

What the company said about the feature

Commenting on the new feature, Anuj Bhansali, Head of Trust & Safety at PhonePe, said, “At PhonePe, payment security is paramount, and we have implemented several initiatives to safeguard our customers. ‘PhonePe Protect' represents our vision of creating a financial ecosystem where security is seamlessly embedded into every transaction. With this feature, we've developed a robust security system that shields our user base (over 61 crore as of March 31, 2025) from cyber threats in real time. This is more than just a security feature– it's our commitment to building a safer digital payments ecosystem for India. We are confident that this solution will establish a secure and seamless payment experience for our users.”