Google is rolling out a new Verified Calls feature for the Phone app to let a user know that they are receiving a call from a business and the reason behind it. The company explains that the Verified Calls feature is meant to avoid scams and fraud calls by verifying the identity of the business that is calling, display their reason for calling as well as their business logo. All these details will be shown on the incoming call screen so a user knows that they are receiving a genuine call from a business and its purpose without picking the phone up. Google also confirms that a user's private data is not shared with the businesses at any time during this process.
Verified Calls are different from call screening as in the latter, Assistant screens the calls after it is picked up. The former requires businesses to send their phone number, the phone number they are calling, and the reason they are calling like "Scheduling your internet installation." This information is then relayed by Google's server to the Phone app on your device. Then, when the business calls you, Google compares the incoming call information with the one provided by the business and then shows it on the Phone app. Within a few minutes of the verification being completed, Google will delete your phone number and the reason for calling from its servers.
The Verified Calls feature is turned on by default provided you have the Google Phone app on your device and have your number linked to your Google account.
Source: Android Police