RBI's MuleHunter.AI Demonstrates Effectiveness in Identifying Fraudulent Bank Accounts
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Mumbai, Dec 6 (NationPress) The Reserve Bank of India (RBI) announced on Friday that a pilot program with two major public sector banks using its MuleHunter.AI solution to pinpoint mule bank accounts has shown positive results, encouraging other banks to engage in this initiative.
Banks are urged to collaborate with the Reserve Bank Innovation Hub (RBIH) to enhance the MuleHunter.AI project aimed at addressing the problem of mule bank accounts that facilitate financial fraud, stated the central bank.
MuleHunter.AI employs sophisticated AI technology to identify and flag mule accounts, which are frequently exploited in money laundering operations. The utilization of these money mule accounts is a prevalent tactic among fraudsters to divert the proceeds of their crimes.
As per the RBI, a mule account refers to a bank account employed by criminals for laundering illegal funds, typically established by unwitting individuals enticed by promises of easy earnings or pressured into participation. The transfer of funds through these intricately connected accounts complicates tracing and reclaiming the funds.
The AI/ML-based model known as MuleHunter.AI is currently being piloted by RBIH, a subsidiary of the RBI. This model enables efficient detection of mule bank accounts, as noted by the RBI.
Data from the National Crime Records Bureau (NCRB) reveal that online financial fraud constitutes 67.8 percent of all complaints related to cybercrime. This highlights the urgent need for effective fraud prevention AI tools. One of the primary challenges in combating financial fraud is the misuse of money mule accounts. Such accounts are crucial for facilitating illegal financial activities; therefore, tools like MuleHunter.AI are essential for safeguarding the financial ecosystem and reducing cybercrime.
The RBI has been implementing various strategies in collaboration with banks and other stakeholders to avert and alleviate digital fraud in the financial sector. These measures include RBI guidelines for regulated entities aimed at enhancing cybersecurity, preventing cyber fraud, and monitoring transactions.
Additionally, the Reserve Bank is currently hosting a hackathon under the theme "Zero Financial Frauds" which encompasses a specific challenge regarding mule accounts, designed to motivate the creation of innovative solutions to curb the use of mule accounts.
