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Informist, Wednesday, Apr. 9, 2025

--RBI Swaminathan: Pilots of mule hunter extremely successful 

MUMBAI – Pilots of "mule hunter" were extremely successful, said Reserve Bank of India Deputy Governor Swaminathan J. said at the post-Monetary Policy press conference Wednesday over the growing concern around financial frauds. This artificial intelligence-powered tool--MuleHunter.ai--was designed to identify and flag suspicious bank accounts, known as "mule accounts".

Mule accounts are typically used to launder the proceeds of crime, with fraudsters recruiting unsuspecting individuals to act as "mules" by using their bank accounts to receive or transfer illicit funds. These accounts, which often operate under false identities or third-party names, are commonly linked to money laundering, tax evasion, and other financial crimes. The difficulty in detecting these accounts stems from the fact that they are often opened by legitimate individuals who unwittingly assist in illegal activities, making detection challenging during the onboarding process.

On Dec. 6, former RBI governor Shaktikanta Das in his monetary policy statement introduced MuleHunter.ai, an advanced artificial intelligence and machine learning model developed by Reserve Bank Innovation Hub in Bengaluru, to tackle the growing menace of mule bank accounts and digital fraud.

First introduced during the Global Fintech Fest in August, MuleHunter.ai represents a shift in the way financial institutions can identify suspicious activities. Unlike conventional fraud detection systems that rely on predefined rules, MuleHunter.ai continuously learns from data, enabling it to adapt and evolve in response to increasingly fraudulent methods. Additionally, by improving detection capabilities, MuleHunter.ai will enhance the traceability of illicit funds and strengthen the financial system's defences against online financial crimes.  End

Reported by Vaishali Tyagi

Edited by Akul Nishant Akhoury

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