The Reserve Bank of India (RBI) has introduced an advanced AI tool called MuleHunter.ai to fight digital fraud and detect mule bank accounts. Developed by the Reserve Bank Innovation Hub (RBIH), this tool aims to help banks identify and stop the use of mule accounts more effectively. RBI Governor Shaktikanta Das announced this initiative in response to the increasing number of online financial fraud cases, which account for 67.8% of all cybercrime reports, according to the National Crime Records Bureau.
Mule accounts are bank accounts used by criminals to hide illegal funds. These accounts are often created by unsuspecting individuals in exchange for quick money or through coercion. Funds are moved through these interconnected accounts, making it hard for banks to trace or recover the money.
Earlier methods, which relied on static rules, were slow and less effective. MuleHunter.ai uses machine learning (ML) to analyze transaction patterns and account data, detecting mule accounts faster and more accurately. This AI-driven approach promises better results and will help reduce fraud cases in India’s banking system.
Source: news18
