Context:
Central bank of India has developed an AI/ML based open-source tool known as MuleHunter.AI to trace killer accounts used in financial frauds.
Key Highlights:
Successful Pilot: The two state-run banks that piloted it succeeded in more collaboration within the Reserve Bank Innovation Hub (RBIH) for the development of the tool.
Ongoing RBI Efforts Against Digital Frauds: RBI has launched numerous initiatives such as strengthening cyber security, issuance of fraud prevention guidelines, and transaction monitoring among many others to tackle digital fraud in the financial sector.
Mule Accounts and Financial Frauds: In the financial fraud world, mule accounts serve as a transfer point for fraudsters, who use it to channel illegal transactions. The RBI is working on a hackathon on Zero Financial Frauds specifically around mule accounts.
Increasing Mule Account Activity: The mule account activity in India is on the rise. Cities such as Bhubaneswar, Lucknow, and Navi Mumbai are the top three with the highest numbers.
Encouraging Innovation: The hackathon is also an initiative by RBI to encourage development efforts of such innovative solutions fighting against mule accounts and frauds.
Industry Support: The CEO of KiyaAi, Rajesh Mirjankar, termed MuleHunter.AI as an “AI-driven initiative,” which is very significant for the “detection and prevention of fraud,” specifically mule accounts fraud.
Collaborative Approach:
