Amit Shah Says AI Will Help Detect ‘Mule Accounts’ As I4C, RBI Innovation Hub Sign Cyber Fraud Pact

 

 

Union Home Minister Amit Shah on Tuesday said the Prime Minister Narendra Modi government was intensifying efforts to build a ''cyber secure Bharat'' after the Indian Cyber Crime Coordination Centre (I4C) under the Ministry of Home Affairs signed an MoU with the Reserve Bank Innovation Hub (RBIH) to combat cyber fraud using Artificial Intelligence. In a post on X, Shah said: ''Mule accounts are big hurdles in curbing cyber crimes. Today, the I4C under MHA signed an MoU with RBIH unleashing the power of Artificial Intelligence to combat cyber fraud." He added that the initiative would "swiftly detect and cull hidden mule accounts by feeding the data from the I4C’s Suspect Registry to the AI-driven fraud detection system and serve the citizens as their next gen shield against cyber crime".

 

The agreement is aimed at strengthening real-time detection of suspicious bank accounts used in online fraud, phishing scams, digital arrest frauds and financial cyber crimes. Officials said data from I4C’s "Suspect Registry" would be integrated with RBIH's AI-based fraud monitoring systems to identify unusual transaction patterns and prevent fraudulent fund transfers more effectively. Mule accounts - often opened using fake identities or operated through unsuspecting account holders - have become a major challenge for law enforcement agencies investigating cyber fraud. These accounts are frequently used by organised cybercrime networks to move stolen money rapidly across multiple banking channels.

 

The move comes amid rising concerns over online financial frauds in India, with cyber criminals increasingly targeting citizens through fake investment schemes, impersonation scams, OTP frauds and social engineering attacks. Government agencies have repeatedly warned that rapid digitisation and increased use of digital payments have also expanded the scale of cyber threats. The I4C, functioning under the Ministry of Home Affairs, acts as the Centre's nodal agency for tackling cybercrime and coordinating with state police forces, banks, fintech platforms and intelligence agencies. Officials said the latest AI-driven collaboration with RBIH is expected to improve preventive surveillance, accelerate fraud detection and strengthen protection for digital banking users across the country.