New Delhi: Reserve Bank of India (RBI) governor Shaktikanta Das has urged banks to crack down on ‘mule accounts’ or bank accounts that are used to push proceeds of illegally gotten wealth. Das urged bank MDs and CEOs to crackdown on mule accounts during a meeting in Mumbai, while urging them to exercise control over cybersecurity risks.
What is a mule account?
A mule account is a bank account that is used to store money accrued from illegal activities and facilitate the transfer of such funds. Some of the common uses of mule accounts are money laundering as well as the channelling of funds from cybercrime.
Money mule accounts are often used to transfer funds from fraud victims. These accounts are used with the intention of defrauding victims and aiding in scams and crimes.
How to identify money mules?
Money module accounts are characterised by a frequent change in:
Email address
Address Phone number
System access location
Nature of depositsNature of withdrawals
Mule accounts were involved in 55 per cent of all frauds in India, according to the 2024 Digital Banking Frauds Trends in India report by BioCatch. Money worth Rs 1.8 crore reportedly passed through these mule accounts, according to the BioCatch report.
How to avoid mule accounts
Avoid illicit sites that promote gambling or pornography, the ET reported, citing mFilterIt CEO Amit Relan. Fraudsters tend to crawl these Internet spaces to lure gullible individuals online and defraud them of their money.
Bank in a secure way
Enable 2-factor authentication for your bank account to fight off fraud and keep your passwords for social media, banking and email secure, said Dhiren V Dedhia, head of enterprise solutions at CrossFraud.
Avoid unsolicited communication
Avoid suspicious SMSes, emails and WhatsApp messages that urge you to click on a link. Avoid callers who ask you to share personal data while sharing unreal offers.
Be vigilant
In case of any untoward transaction via QR scan or any of the phishing methods shared above, be quick to notify the concerned bank, cybercrime department and even regulator.
RBI governor Shaktikanta Das on Wednesday directed banking sector MDs and CEOs to crackdown on mule accounts used by cybercriminals. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
