Govt to use AI to track mule accounts in cyber fraud crackdown: Amit Shah

The Indian government will leverage Artificial Intelligence (AI) to identify ‘mule’ accounts used by cybercriminals to store illicit funds, said Union Home Minister Amit Shah.

Chairing a meeting of the Parliamentary Consultative Committee on ‘Cyber Security and Cyber Crime’ in New Delhi on Monday (February 10), Shah disclosed that 805 apps and 3,266 website links had been blocked following recommendations from the Indian Cybercrime Coordination Centre (I4C), the government’s cybercrime monitoring and detection unit.

He said 399 banks and financial intermediaries are now working in coordination with the government, resulting in over 600,000 suspicious data points being flagged. More than 1.9 million mule accounts have been identified, preventing fraudulent transactions worth Rs 2,038 crore.

Strengthening cybersecurity, awareness

The Union Home Minister said AI will play a key role in detecting mule accounts, with efforts underway in collaboration with the Reserve Bank of India (RBI) and financial institutions to develop a robust tracking system. The government aims to disable such accounts before they become active.

A ‘mule account’ refers to a bank account used by fraudsters to launder stolen money. To combat financial cybercrime, helpline number ‘1930’ has been set up as a centralised platform to assist victims in blocking compromised cards and accounts.

Shah also emphasised the importance of public awareness, reiterating Prime Minister Narendra Modi’s message — ‘STOP-THINK-TAKE ACTION’ — to encourage vigilance against cyber threats. He pointed out that India’s rapid expansion of digital infrastructure has naturally led to an increase in cyber incidents, making cybersecurity a priority.

Addressing the broader cyber landscape, Shah described cyberspace as an intricate network of software, services, and users. He stressed that effective control of cyber fraud requires a multi-faceted approach targeting all three elements.

Digital growth, cybersecurity challenges

Shah noted that India’s digital transformation has accelerated over the past decade, with 95 per cent of villages now digitally connected and one lakh gram panchayats equipped with WiFi hotspots. He highlighted the exponential growth in internet usage, which has surged 4.5 times in the past 10 years.

In 2024 alone, digital transactions in India reached 246 trillion, amounting to Rs 17.221 trillion through UPI. The country accounted for 48 per cent of all global digital transactions, solidifying its position as the world’s third-largest startup ecosystem.

He further stated that the digital economy contributed Rs 32 trillion to India’s GDP in 2023 — around 12 per cent of the total — while generating 15 million jobs. With the digital sector now making up 20 per cent of the national economy, cybersecurity has become a crucial area of focus for the government.

The Ministry of Home Affairs aims to work towards a future with zero cybercrime cases, said Shah. He also underscored the need for continued vigilance and proactive measures in securing India’s digital infrastructure.