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Mule accounts are bank accounts used by cybercriminals to transfer fraudulent funds. Often, these accounts are opened using fake documents.

With the increasing reach of digital payments in the country, cases of cyber fraud are also increasing rapidly. The hard-earned money of ordinary people is reaching fraudsters through fake bank accounts. In light of this threat, the central government is now emphasizing the implementation of a special AI tool in banks. Home Minister Amit Shah has urged all banks to adopt Mule Account Hunter, or MuleHunter.ai. At an event in Delhi, Amit Shah stated that cyber security is no longer just a financial issue but a matter of national security. He pointed out that every second digital transaction in the world takes place in India. Therefore, strengthening the banking system is crucial. So, let us now explain how Mule Account Hunter, the software Amit Shah is urging to be used, will protect against cyber fraud.

What is Mule Hunter?

Mule Hunter is an AI-based software developed by the Reserve Bank Innovation Hub in collaboration with the central government. Its purpose is to identify bank accounts used for cyber fraud and money laundering. This tool was announced in December 2024. The system works using machine learning technology. It continuously monitors bank account transaction patterns and immediately flags suspicious activity. It is claimed that approximately 20,000 suspicious or fake accounts are identified each month with the help of this tool.

What are Mule Accounts?

Mule accounts are bank accounts used by cybercriminals to transfer fraudulent funds. Sometimes these accounts are opened using fake documents, and in many cases, people unknowingly rent out their accounts. In reality, fraudsters do not directly request money from their accounts, but instead circulate funds through such accounts, making tracking difficult. In many cases, people are lured into using their bank accounts by promising higher earnings or work from home. These accounts later become a link to cyber fraud.

How does this system work?

Mule Hunter has been trained on a large data set. It analyzes account activity and transaction patterns. By distinguishing between the behavior of normal and suspicious accounts, the system identifies signals typically seen in mule accounts. As soon as any unusual activity is detected, the bank receives an alert so that timely action can be taken. Furthermore, the government believes that if all public, private, and cooperative banks adopt this tool, the vast network of mule accounts can be broken. The Home Minister informed that a large amount of money stolen in cyber fraud, amounting to thousands of crores of rupees, has been frozen. Investigating agencies have cancelled millions of SIM cards, blocked mobile IMEIs, and arrested thousands of people. The Home Minister also informed that by December 2026, banks and financial institutions will be linked to the Indian Cyber ​​Crime Coordination Centre framework to ensure coordinated and swift action against cyber crime.