The Reserve Bank of India (RBI) on Friday announced that a pilot with two large public sector banks on its MuleHunter.AI solution to identify mule bank accounts has yielded encouraging results and urged banks to join the initiative.
Banks are encouraged to collaborate with the Reserve Bank Innovation Hub (RBIH) to further develop the MuleHunter.AI initiative to deal with the issue of mule bank accounts being used for committing financial fraud, the central bank said.
MuleHunter.AI is an advanced AI technology that identifies and flags mule accounts, commonly used in money laundering schemes. The use of these money mule accounts is a common method adopted by fraudsters to channel the proceeds of fraud.
According to the RBI, a mule account is a bank account used by criminals to launder illicit funds, often set up by unsuspecting individuals lured by promises of easy money or coerced into participation. The transfer of funds through these …