Financial Services Secretary M Nagaraju on Thursday asked banks to adopt the MuleHunter AI tool developed by RBI at the earliest for timely identification and prevention of mule accounts involved in financial cyber frauds.

During a meeting with senior officials of law enforcement agency, RBI and banks, he reviewed the digital financial frauds and increasing use of mule accounts by the cyber criminals.

During the meeting he also advised State Level Bankers' Committee to sensitise the State Police Authorities about the steps taken by the banks for prevention of cyber financial frauds and undertake greater public awareness initiatives, the Department of Financial Services said in a post on X.

The discussion focused on 'Operation Octopus' recently carried out by the Hyderabad Police, and learnings emerged from it, it said.

It was emphasised to strengthen coordinated efforts to combat cyber-enabled financial fraud and enhance customer protection, it said.

The meeting emphasized closer collaboration among law enforcement agencies and banks, real-time intelligence sharing, and faster response mechanisms to detect and prevent digital financial frauds under Operation Octopus, it added.