What is a ‘Mule Account’? Is a game being played with your money somewhere?

Fraud: Do you know what a Mule Account is and how to avoid it? Let's find out how scammers can cheat you through your bank account.

With an increase in fraud cases, the Reserve Bank of India (RBI) has ordered banks to curb "Mule accounts". Scammers are using various illegal methods for money laundering. Identifying these scammers has become a major challenge for the RBI.

Money launderers use various illegal ways to get money and transfer it, making it difficult to track. The RBI has instructed banks to be vigilant and monitor such accounts closely.

What is a Mule Account?

Mule accounts are bank accounts used for illegal activities, such as money laundering and illegal transactions. In India, such accounts are often opened by people who, in exchange for a commission or fee, allow others to use their accounts for illegal transactions.

How does RBI identify Mule Accounts?

It is difficult for banks to identify these accounts. However, by keeping a close watch on transactions and monitoring accounts, banks can identify such accounts. If suspected, these accounts can be frozen or closed. According to a report, out of 10 Mule accounts, 9 were not detected by an Indian bank. The study found that these Mule accounts were initially active in India, but later, international VPNs were used for transactions.

How to stay safe?

The RBI always advises customers to be cautious of attractive offers, easy money, and job offers that involve money transfers. Be wary of job offers that promise high salaries for easy work. Be especially cautious of job offers that involve money transfers.