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RBI's MuleHunter.Ai Tool: The Reserve Bank Innovation Hub (RBIH), the innovation arm of the Reserve Bank of India (RBI), is achieving a significant leap in the process of developing a mechanism to fight against financial fraud. RBIH is deploying an advanced AI tool called MuleHunter.ai, which is a technology that identifies and flags accounts that are commonly used in money laundering schemes. The RBIH has already demonstrated the use case of MuleHunter.ai  in two public sector banks.

Data from the National Crime Records Bureau (NCRB) shows that online financial fraud contributes to 67.8% of all cybercrime-related complaints. This data prompts the urgency to provide effective anti-fraud AI tools.

One of the biggest problems in tackling financial fraud is the exploitation of cash mule accounts. These accounts are major enablers of illicit financial activities; hence, tools like MuleHunter.ai can play a crucial role in safeguarding the financial ecosystem and curbing cybercrime.

All about Money Mule Account

A Money mule account is nothing but a bank account used by criminals especially cyber fraudsters to launder illegal funds.  Often they do this act on a dubious individual by luring them in the promise of easy payments. The transfer of using these highly interconnected accounts creates difficulty in tracing and recovering funds. 

How does MuleHunter.ai identify mule accounts?

RBI's Innovation Centre has undertaken extensive consultations with banks to understand the methods and processes they use for identifying and reporting cash mule accounts. According to RBIH, the current standard rule-based systems that are being used to detect mule accounts result in high false positives and long turnaround times, leaving many accounts unidentified.

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The RBIH has analysed nineteen different forms of mule account operations in collaboration with several banks and then they have developed the platform considering all the experiences. According to the innovation centre, the initial results from Mulehunter.Ai show significant gains in efficiency and accuracy.

How Mulehunter.Ai Functions

Mulehunter.Ai  is an -in-house AI/ML-based solution that is more suitable than rule-based systems for identifying suspicious mule accounts. Its advanced ML algorithms are capable of analyzing datasets containing transactions and account details and predicting mule accounts with greater accuracy and greater speed than traditional rule-based systems.

RBIH’s AI platform aims to quickly identify fraudulent accounts. Frauds can happen through various means and these are no longer small incidents; they are getting bigger day by day. The better way would be to see where the money goes – to the mule accounts. This machine learning-based approach helps detect more mule accounts in the bank’s system.

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