NEW DELHI: The Reserve Bank of India (RBI), through its innovation arm, the Reserve Bank Innovation Hub (RBIH), has introduced MuleHunter.AI, a cutting-edge artificial intelligence tool aimed at detecting mule accounts often used in financial crimes such as money laundering. This initiative underscores RBI’s commitment to strengthening the financial ecosystem against growing cybercrime threats.
The Scope and Success of MuleHunter.AI
Launched in collaboration with two major public sector banks, MuleHunter.AI has demonstrated three times the accuracy of traditional fraud detection systems. By analyzing 19 behavioral patterns, such as sudden transactions in dormant accounts or high-value debits following multiple small credits, the tool enables faster and more precise identification of suspicious accounts. Mule accounts, typically created by misled or coerced individuals, act as intermediaries for illicit funds, making their detection a priority.
Future Prospects and Broader Adoption
RBI is actively engaging with additional banks to expand the adoption of this AI tool. Given that India recorded over ₹11,333 crore in cyber fraud losses in the first nine months of 2024 alone, MuleHunter.AI represents a critical step toward safeguarding financial networks. Future updates could include real-time alerts for individuals, further empowering users and institutions against cyber threats.
This pioneering approach by RBI highlights the increasing role of artificial intelligence in tackling complex financial fraud scenarios, setting a benchmark for other financial regulators globally.
Source: Web Team, C6N
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