Recently, the Reserve Bank of India (RBI) urged banks to adopt its AI/ML-based tool, MuleHunter.AI, to address the growing problem of mule accounts involved in digital frauds.
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About MuleHunter.AI
It is a cutting-edge AI tool designed to detect and flag Mule Accounts, aiming to tackle financial fraud and money laundering.
Developed by– Reserve Bank Innovation Hub (RBIH)
Working:
It outperforms traditional rule-based systems by utilizing machine learning algorithms.
It analyzes transaction data and account details to predict Mule Accounts with higher accuracy and speed.
The platform enables banks to detect fraudulent activity more effectively within their networks by tracking the flow of illicit funds into mule accounts.
The tool has been successfully piloted in two public sector banks.
About Mule Accounts
According to the Reserve Bank Innovation Hub, ‘Mule Accounts’ are bank accounts exploited by criminals to channel illicit funds.
These accounts are typically opened by individuals who are either deceived by promises of easy money or pressured into participating.
The recruited individuals, known as money mules, may or may not be aware they are aiding in illegal activities.
The transfer of funds through these highly interconnected accounts makes it difficult to trace and recover the funds.
A money mule is someone who transfers or moves illegally acquired money on behalf of someone else.
1. Consider the following statements regarding MuleHunter.AI:
- It is an AI-powered tool developed by the Reserve Bank of India (RBI).
- It uses machine learning algorithms to detect mule accounts involved in digital fraud.
- It has been successfully piloted in two public sector banks.
Which of the above statements is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2, and 3
2. Which of the following correctly describes a “Money Mule”?
(a) An individual involved in tax evasion through illicit fund transfers.
(b) A person who unknowingly transfers illegally acquired money on behalf of someone else.
(c) A bank account used by criminals to hoard their personal assets.
(d) A financial system designed to combat money laundering activities.
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