Cyber fraud cases are rising rapidly across India. As digital payments grow, so do online scams.
Every day, fraud worth crores of rupees is being reported, leaving people worried about the safety of their hard-earned money.
To tackle this serious problem, the central government is now turning to artificial intelligence.
A special AI tool called MuleHunter.ai is being introduced across banks to detect and stop fraud at an early stage.
What Is MuleHunter.ai?
MuleHunter.ai was launched in December 2024 by the Reserve Bank of India through its subsidiary, the Reserve Bank Innovation Hub.
It is an advanced AI-based software designed to detect “mule accounts.”
These are bank accounts used by criminals to transfer or hide money gained through cyber fraud.
Mule accounts are often opened using fake documents or are misused by fraudsters to move stolen money quickly.
This makes it harder for authorities to track the real criminals.
MuleHunter.ai aims to identify such accounts early and flag them before more damage is done.
Why the Government Wants All Banks to Use It
Recently, Union Home Minister Amit Shah urged banks to adopt this AI tool on a large scale.
At first, it was tested with a limited number of banks.
But now, the government wants as many banks as possible to integrate it into their systems.
According to reports, the system can identify thousands of suspicious accounts every month.
If widely adopted, it could significantly reduce fraudulent transactions and prevent huge financial losses.
How Does This AI System Work?
MuleHunter.ai is trained using large data sets of banking information.
It studies:
Transaction patterns
Account activity
Customer behavior
If an account shows unusual activity — such as sudden large transfers or suspicious patterns — the system flags it immediately.
This early warning allows banks to freeze or investigate the account before more money is lost.
Since the tool has been developed under the supervision of the central bank, it follows strict security and privacy standards.
Being developed within the country also ensures better control and monitoring.
A Strong Step Toward Safer Banking
In today’s digital economy, cybersecurity is more important than ever.
By using AI tools like MuleHunter.ai, banks can strengthen their security systems and protect customers from cyber fraud.
At the same time, it can increase public trust in digital payments.
If implemented effectively across all banks, this AI-powered system could become one of India’s strongest defenses against online financial crime.
