News: Recently, the Reserve Bank of India (RBI) urged banks to adopt its AI/ML-based tool, MuleHunter.AI, to address the growing problem of mule accounts involved in digital frauds.
About MuleHunter.AI
- It is a cutting-edge AI tool designed to detect and flag mule accounts, with the aim of tackling financial fraud and money laundering.
- Developed by– Reserve Bank Innovation Hub (RBIH)
- Working:
- It outperforms traditional rule-based systems by utilizing machine learning algorithms.
- It analyzes transaction data and account details to predict mule accounts with higher accuracy and speed.
- By tracking the flow of illicit funds into mule accounts, the platform enables banks to detect fraudulent activity more effectively within their networks.
- The tool has been successfully piloted in two public sector banks.
About Mule Accounts
- According to the Reserve Bank Innovation Hub, ‘mule accounts’ are bank accounts exploited by criminals to channel illicit funds.
- These accounts are typically opened by individuals who are either deceived by promises of easy money or pressured into participating.
- The recruited individuals, known as money mules, may or may not be aware that they are aiding in illegal activities.
- The transfer of funds through these highly interconnected accounts makes it difficult to trace and recover the funds.
