The threat of cyber fraud is increasing day by day and digital payments and online transactions are increasing it. Keeping this in mind, the Reserve Bank of India (RBI) has introduced ‘MuleHunter.ai’ which an artificial intelligence tool designed to hunt down and counteract one of the most deceptive facilitators of financial frauds - the mule accounts.
The identification of mule accounts which are commonly used in money laundering scams will be done by this particular tool.
In the world of banking, mule accounts are the accounts made by unsuspecting individuals who fall into trap of fake promises of easy money. These can be used by cybercriminals to transfer money. Funds transferred here, are interconnected so recovery becomes difficult,
In case of transitional systems, the chances of producing false positives, resulting in inefficiencies and lost chances to catch fraudsters are prevalent. The use of machine learning algorithms on the other hand helps in ananlysing the transaction patterns and account details. This helps in flagging out the questionable activity with accuracy.
The tool, MuleHunter.ai dives thoroughly examines the transaction chain data and detects warning signs of mule account activity. This tool, by concentrating on the final destination of the money, not only detects fraudulent accounts but also assists banks in halting the movement of illegal funds before any damage occurs.
Compiled by Syed Muskan
