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What is Mule Hunter by RBI: Digital payments are growing rapidly in the country. Today, India accounts for a large portion of the world's total digital transactions. However, this has also led to a rise in cyber fraud cases. Fraudsters transfer people's hard-earned money through fake bank accounts, making it difficult to trace the money. In light of this threat, the central government has urged banks to adopt a specialized AI tool. Home Minister Amit Shah recently urged all banks to implement MuleHunter.ai. He stated that cybersecurity is no longer just a financial issue, but also a matter of national security.

What is MuleHunter.ai?
MuleHunter.ai is an artificial intelligence-based software developed by the Reserve Bank Innovation Hub in collaboration with the central government. This tool was announced in December 2024 and its primary purpose is to identify bank accounts that are being used for cyber fraud and money laundering.

This system, which works on machine learning technology, continuously monitors bank account transactions and analyzes their patterns. If unusual activity is detected in an account, the system immediately flags it as suspicious. According to media reports, approximately 20,000 suspicious accounts are identified each month with the help of this tool.

What are mule accounts?

Mule accounts are accounts used by cybercriminals to transfer fraudulent funds from one place to another. These accounts are often opened with fake documents. In some cases, people, lured by greed, rent out their bank accounts. Fraudsters don't directly transfer money to their accounts, but instead funnel funds through such accounts, making it difficult for investigating agencies to track them.

How will this system help?
MuleHunter.ai uses big data to identify the differences between normal and suspicious account behavior. As soon as an unusual transaction is detected in an account, the bank receives an immediate alert. This allows timely action to be taken, and the fraudulent funds can be stopped.

The government believes that if all public, private, and cooperative banks adopt this tool, it can disrupt the vast network of mule accounts. Furthermore, by December 2026, banks and financial institutions will be integrated into the Indian Cyber ​​Crime Coordination Centre's framework, enabling swift and coordinated action against cybercrime. MuleHunter.ai could be a major step towards securing Digital India.

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