RBI Launches Global Hackathon HaRBInger 2024 to Combat Financial Frauds

The Reserve Bank of India (RBI) has initiated its third global hackathon, HaRBInger 2024 – Innovation for Transformation, aimed at developing innovative tech-based solutions to predict, detect, and prevent financial frauds in real-time. The hackathon features two key themes: ‘Zero Financial Frauds’ and ‘Being Divyang Friendly’.

Key Themes and Problem Statements

Zero Financial Frauds

Real-Time Fraud Prevention

Development of prototypes to predict, detect, and prevent financial frauds in real-time using alternate sources of data, including publicly available information.

Anonymity in CBDC Transactions

Creation of tools to ensure transaction anonymity in Central Bank Digital Currency (CBDC) transactions while maintaining financial system integrity.

Mule Account Detection

Building technology-based solutions to identify mule bank accounts/payment wallets.

Being Divyang Friendly

Banknote Identification for Visually Impaired

Development of tools for the accurate identification of banknotes by visually impaired individuals.

Incentives and Support

• Prize Money: INR 40 Lakh for winners across each problem statement.
• Special Prize: INR 20 Lakh for the best all-women team across all problem statements.
• Stipend: INR 5 Lakh for each shortlisted team to cover prototype development costs.
• Mentorship: Opportunity to be mentored by industry experts and present solutions to an eminent jury.

Background and Context

Digital Payments Intelligence Platform

On the same day as the hackathon announcement, the RBI revealed plans to establish a digital payments intelligence platform to combat online financial frauds, incorporating network-level intelligence and real-time data sharing.

Surge in Online Frauds

The announcement follows a significant increase in online frauds, which surged 334% year-on-year to 29,082 cases in FY24, with the involved amount rising to INR 1,457 Cr from INR 227 Cr the previous year.

Collaborative Efforts

This move is part of the RBI’s broader strategy to address the rising online frauds, aligning with recent government discussions with fintech startups and law enforcement agencies on digital financial fraud challenges.