The government has made preparations to crack down on fake accounts in the banks. Artificial intelligence will now be used to detect fake accounts. Through this, banking fraud will be stopped. Along with this, information will also be available about fake bank accounts present in the bank.
The Finance Ministry on Friday asked banks and financial institutions to use artificial intelligence tools, including the Reserve Bank of India’s ‘MuleHunter.AI’, to curb rising financial frauds. By using this, information about fake accounts present in the bank will be available within minutes.
How will fake bank accounts be banned?
The meeting, chaired by Financial Services Secretary M Nagaraju, asked banks to adopt best practices, leverage state-of-the-art tools and enhance cooperation among banks to deal with mule (fake) accounts.
“Proactive measures should be taken to protect the hard-earned money of citizens,” the Department of Financial Services (DFS) posted on Twitter. He said that this is our common responsibility.
How are these fake accounts used?
Earlier in the day, RBI asked banks to cooperate with its initiative ‘MuleHunter.ai’ to remove mule accounts (fake accounts) used for financial fraud.
Mule account is a bank account which is used by criminals to launder money illegally. By opening these accounts, anonymous persons cheat people and deposit money in them. Money transfers from these accounts are difficult to trace and recover.
Transfer money through UPI in seconds
Fake accounts are used to divert money earned from cyber fraud and illegal activities. For this, vicious criminals use UPI, through this they transfer money from one account to another within minutes without going to the bank.