The Department of Financial Services (DFS) has ordered banks to implement cutting-edge technology, such as artificial intelligence (AI) and machine learning (ML), as an important step to combat the growing threat of digital financial fraud. This is done to protect consumers from scammers.
In a high-level meeting with officials from the Reserve Bank of India (RBI), public sector banks, commercial banks, and payment institutions, the decision was made under the direction of the Secretary of DFS.
Addressing digital fraud, particularly the growing number of mule accounts used to enable illicit transactions, was the main topic of the discussion.
The Department of Financial Services in a social media post stated that “Banks were directed to adopt advanced technologies, including AI/ML solutions, for real-time detection of mule accounts, training & upskilling bank staff on fraud detection & prevention, and greater advocacy & awareness for common citizens not to fall prey to the fraudsters.”
The Secretary of the Department of Financial Services underlined the necessity of taking preventative action to safeguard the hard-earned money of the public and the significance of utilizing state-of-the-art methods and instruments to successfully address these issues.
Interestingly, they were urged to investigate MuleHunter. The RBI created AI, an AI/ML-driven technology that provides improved capabilities for tracking suspicious accounts and identifying fraudulent activity.
Banks were directed to prioritize training and upskilling their employees in fraud detection and prevention in addition to implementing cutting-edge technologies.
The Secretary also underlined the significance of educating consumers about typical fraud techniques and advising them to remain alert and avoid becoming victims of scammers.
In order to guarantee a cohesive strategy for preventing digital financial crimes, the summit emphasized the significance of interbank cooperation and the exchange of best practices. To improve the financial system’s entire security architecture, banks were urged to collaborate and share ideas.
The government’s larger commitment to protecting the financial ecosystem and guaranteeing public confidence in digital banking channels includes this instruction.
The banking industry wants to create a strong defense against changing financial scams by combining cutting-edge technologies and encouraging teamwork.
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