The Reserve Bank of India on Friday asked banks to use the MuleHunter.AI tool to identify and remove mule accounts used for financial fraud. According to RBI, MuleHunter.AI has already been successfully used in two public sector banks.
What is a mule account and how does it operate?
According to RBI, a money mule account is a bank account used by criminals to loot money illegally. Often these accounts are opened by unknown persons who are lured by giving them nominal money. It is difficult to trace the money transfer from these accounts and get a refund.
Cyber criminals use these mule accounts to loot money illegally. By hiding his name and identity, any anonymous person opens these accounts and gets the cheated money deposited in it. And it is difficult to trace the money transfer from these accounts and get a refund.
According to the data of the National Crime Records Bureau (NCRB), 67.8% of complaints related to cyber crime are due to online financial fraud. In such a situation, there is an extreme need for an effective system of MuleHunter.AI to protect people from bank fraud.
What is RBI’s new tool MuleHunter.AI?
According to the Reserve Bank Innovation Hub, the central bank held long discussions with banks to understand the existing methods and processes to identify these mule accounts. The system currently used to detect mule accounts takes a lot of time. Due to which many such accounts remain undiscovered. After this, RBI has developed this tool after working with many banks and keeping in mind the activity pattern of nineteen different mule accounts.
How does MuleHunter.AI work?
It is an in-house AI/ML-based system which is better than the existing system to identify suspicious mule accounts. With the help of advanced ML algorithms, transaction and account detail-related datasets, this tool can identify mule accounts very quickly.
RBI’s aim behind developing this tool is to identify fraud accounts quickly. Because there are many types of bank frauds and it is increasing day by day. Therefore, the best way is to find out where this money ultimately goes. Using this new technology, banks can identify mule accounts faster and with more accuracy.
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