Finance Ministry Directs Banks to Adopt RBI-Developed MuleHunter AI Tool to Combat Cybercrime

Financial Services Secretary Urges Banks to Adopt RBI's MuleHunter AI Tool

Financial Services Secretary M Nagaraju on Thursday called upon banks to adopt the MuleHunter AI tool developed by the Reserve Bank of India (RBI) at the earliest. This move aims to facilitate timely identification and prevention of mule accounts involved in financial cyber frauds.

During a meeting with senior officials from the law enforcement agency, RBI, and banks, Nagaraju reviewed the growing issue of digital financial frauds and the increasing use of mule accounts by cyber criminals. The meeting highlighted the need for stronger measures to combat cyber-enabled financial fraud and enhance customer protection.

The discussion focused on Operation Octopus, a recent initiative by the Hyderabad Police, and the key learnings that emerged from it. To strengthen coordinated efforts against cyber-enabled financial fraud, it was emphasized that banks, law enforcement agencies, and RBI must collaborate more closely. This collaboration should include real-time intelligence sharing and faster response mechanisms to detect and prevent digital financial frauds under Operation Octopus.

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In addition to adopting the MuleHunter AI tool, the meeting also stressed the importance of sensitizing State Police Authorities about the steps taken by banks to prevent cyber financial frauds. Furthermore, the State Level Bankers' Committee was advised to undertake greater public awareness initiatives to educate customers about the risks associated with digital financial frauds.