The Reserve Bank of India (RBI) has unveiled MuleHunter.AI, an advanced AI/ML model designed to identify mule accounts, making it a key tool for financial fraud and money laundering.

Developed by the Reserve Bank Innovation Hub (RBIH), MuleHunter.AI has been piloted with two public sector banks. It leverages machine learning to analyze transaction patterns and detect fraud with higher accuracy and speed compared to traditional systems, which often generate false alarms.

The initiative comes as financial fraud in India has surged. Bank fraud cases climbed to 32,363 in FY24, involving ₹2,714.64 crore, compared to 8,752 cases worth ₹9,298.4 crore in FY22, according to Minister of State for Finance Pankaj Chaudhary. Mule accounts contributed to 53% of fraud threats in 2023, underscoring the urgent need for robust detection mechanisms.

The tool builds on insights from 19 distinct fraud patterns, developed in collaboration with multiple banks. Early trials have shown promising results, marking a significant step in combating cybercrime and enhancing trust in the financial ecosystem.