Union Home Minister, Amit Shah announced on May 12, 2026 that the Indian government has taken the bold step of using AI to combat money mule fraud especially since mule accounts are a big hurdle in curbing cyber crimes.
Shah announced that the Indian Cyber Crime Coordination Centre (I4C), a specialized agency designed to fight cybercrime has signed a MoU with the Reserve Bank of India’s Innovation Hub to use AI to combat cyber fraud.
Shah said in a post on X: “Modi govt is tirelessly working for cyber secure Bharat. Today, the I4C under MHA signed an MoU with Reserve Bank Innovation Hub (RBIH) unleashing the power of Artificial Intelligence to combat cyber fraud. The move will 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.”
Ranjeet Bellary, Partner, EY Forensic and Integrity Services – Cyber Forensics said to ET Wealth Online that this MoU between I4C and RBIH strengthens coordination between law enforcement and the banking ecosystem, enabling faster sharing of intelligence and deployment of AI tools to detect and stop fraud.
According to Bellary this means suspicious accounts, especially mule bank accounts, can be identified and blocked earlier, reducing the chances of large-scale financial losses for individuals.
Bellary says that for Indian consumers, the key impact is safer digital transactions across UPI, online banking, and fintech platforms. Faster detection, quicker freezing of fraudulent funds, and a more integrated response system improve the likelihood of preventing fraud or recovering money, while also boosting overall trust in India’s digital financial ecosystem.
