A new security tool to prevent fraud during digital payments

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.

Fintech platform PhonePe has rolled out a security framework designed to safeguard users from fraudulent transactions.

This feature, 'PhonePe Protect', according to the fintech firm, notifies users to avoid making payments to potentially suspicious numbers and displays a 'PhonePe Protect' alert, to users attempting such transactions.

The feature also offers insights into the risks involved when transactions are declined for security reasons.

Bengaluru, 3rd November, 2025 : PhonePe has rolled-out ‘PhonePe Protect’ a security framework designed to safeguard users from fraudulent transactions. This feature notifies users to avoid making payments to potentially suspicious numbers and displays a ‘PhonePe Protect’ alert, to users attempting such transactions. The feature also offers insights into the risks involved when transactions are declined for security reasons. With this initiative, PhonePe ensures its commitment to secure digital transactions for millions of Indian citizens.

PhonePe has rolled-out ‘PhonePe Protect’– a security framework designed to safeguard users from fraudulent transactions. This feature notifies users to avoid making payments to potentially suspicious numbers and displays a ‘PhonePe Protect’ alert, to users attempting such transactions. The feature also offers insights into the risks involved when transactions are declined for security reasons. With this initiative, PhonePe ensures its commitment to secure digital transactions for millions of Indian citizens.

As an early adopter of DoT's FRI, PhonePe claimed it has made use of the feature to decline transactions linked to 'Very High FRI' mobile numbers and display an on-screen alert as part of the 'PhonePe Protect' feature. For 'Medium FRI' numbers, the app displays a proactive user warning before allowing the user to make the transaction.

Device Guard

Device Guard is PhonePe’s proprietary security feature on the device that, with user permission, leverages device data, including information about the device’s hardware, operating software and settings, to protect users from common types of fraud as well as bots, viruses, and other types of malware that could infect a device to steal sensitive information.

Device Guard has anti-malware, anti-abuse and compliance modules that continuously protect and safeguard users. Its anti-abuse models protect users against social engineering scams, where scammers impersonating legitimate organizations target users to steal their information. In such a scenario, Device Guard can recognise if a PhonePe user may be on a phone call and deciphers if the user is showing a different behaviour signature and generates prompts that convey the risk of proceeding with the transaction. The user is then asked to either clarify that they still want to proceed with the transaction or stop the transaction.

“At Meta, we understand the growing prevalence of online scams and recognise the need for collaborative and concrete efforts across the ecosystem to promote safer digital practices by continuously investing in technology and resources. Our safety campaign, ‘Scam se Bacho’, featuring Bollywood actor Ayushmann Khurrana, creatively depicted some of the most common scams people face in their daily lives, encouraging them to stay alert and exercise caution before they take any action,” explains a Meta Spokesperson.

As of 2025, 50% of world's digital transaction volume are conducted by India's UPI platform with over 250 billion annual transactions worth US$3.4 trillion.[8] In 2021, UPI in India had over 500 million active users.[9][10] In the month of August 2025, 20 billion UPI transactions worth ₹ 25 trillion (about 293 billion USD) were processed by the UPI system, equivalent to nearly 7,500 transactions on average every second. The widespread adoption and usage of UPI has positioned India as the global leader in instant payments, accounting for nearly half of all global instant payment transactions.[11][12] UPI is the largest real-time payment system in the world, it handles more than 640 million transactions every day, compared to Visa’s 639 million.[13] Furthermore, the successful execution of an instant payment system at such an enormous scale has made it a soft power tool for India[14] and is often cited as the most transformative and successful financial technology innovations India has developed.[15][16] UPI accounts for 84% of digital payments in India.[17]

 

BY - Aaradhay Sharma