Banks launch AI system to fight digital fraud
Two major Indian banks plan to deploy artificial intelligence systems to combat surging digital payment fraud after losses reached 36,014 crore rupees in 2024, three times the previous year’s total. State Bank of India and Bank of Baroda will each invest 10 crore rupees to create the Indian Digital Payment Intelligence Corporation, with 12 other public lenders joining the effort pending Ministry of Corporate Affairs approval.
The system will use machine learning to identify and block suspicious transactions in real time. Reserve Bank of India officials said the central bank is building a separate digital payment intelligence platform that will analyze mule accounts, telecom records and location data to train fraud detection algorithms.
Several institutions already use the Reserve Bank’s MuleHunter AI technology, which identifies accounts cthat riminals exploit for money laundering. Canara Bank, Punjab National Bank, Bank of India, Bank of Baroda and AU Small Finance Bank have adopted the system to trace fraudulent activity patterns.
