Fraud Risk Management

Fraud Risk Management as part of NPCI at network level has designed and implemented a Real-time Fraud Risk Monitoring and Management solution (FRM). This solution is envisaged as a value added service offered by NPCI to member participants* as a real-time monitoring tool for fraud detection and prevention. This solution is intended to be implemented for all the on-line products offered by NPCI and as on date the solution is implemented for NFS and RuPay. Solution is used for monitoring ATM, POS, E-com, UPI and RuPay credit cards.

System has the capability to process transactions in Real Time (RT) and Near Real Time (NRT) mode. Member banks are monitoring the alerts through web based access provided by NPCI. Frauds have been identified by member banks through online monitoring of the alerts.

The system is being upgraded to handle acquirer level monitoring; online predictive scoring based on transaction patterns and automated Compromise Point and Period (CPP) analysis. NPCI has conducted various workshops and training sessions in Mumbai as well as other cities and covered majority of the banks. These workshops and training sessions are conducted to support member banks in understanding the requirement of fraud risk monitoring and management solution to reduce the fraud exposure as well as to explain/demonstrate various features and functionalities the system encapsulates.

Compromise points and period of compromise identification is another service which is provided by NPCI to member banks. Once fraud is reported by member banks NPCI Fraud Risk team analyses the data on the card and other such cards on which fraud is reported to identify common usage points to arrive at suspected compromise points. A series of fraud incidents occurred this year and NPCI's role in timely identification of compromise points and flagging to member banks in taking proactive measures was critical and has been well appreciated by the banking community.

*This service is currently offered as a Value added service without any charges.