RBI’s Mule Hunter
- December 7, 2024
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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RBI’s Mule Hunter
Sub: Eco
Sec: Monetary Policy
Why in News
The Reserve Bank of India (RBI) has launched Mule Hunter, an Artificial Intelligence (AI) and Machine Learning (ML)-powered system aimed at tackling digital frauds involving mule bank accounts.
Mule Hunter:
- To identify and mitigate fraudulent activities associated with mule accounts.
- Leverages AI and ML algorithms to detect fraud patterns.
- Developer: Created by the Reserve Bank Innovation Hub (RBIH), Bengaluru.
- Operation: Utilizes databases from all banks and payment system operators for comprehensive fraud detection.
- Infrastructure-level setup with real-time fraud detection capabilities.
- Supports all banks and payment systems, creating a centralized approach to fraud management.
- Enables expeditious resolution of mule account cases, reducing operational delays.
Mule account:
- A mule account is a bank account or financial account used to transfer illegally acquired money on behalf of others.
- Purpose: These accounts are used to move money from one place to another, often across borders, to obscure the source of funds and make them appear legitimate.
- How it works: The account holder (the “mule”) allows their account to be used for receiving and transferring money. They typically keep a small percentage of the transferred funds as payment.
- The bulk of the money is then forwarded to another account as directed by the criminals.
- Types of mules:
- Unwitting mules: People tricked into believing they’re doing legitimate work.
- Witting mules: Those who knowingly participate in the scheme.