A method implemented using a processor based device is disclosed. The method includes receiving a video stream comprising a plurality of image frames having at least one moving object, determining a difference between at least two image frames among the plurality of image frames and generating a difference image comprising a plurality of image blobs corresponding to the at least one moving object. The method further includes generating a plurality of bounding boxes, each bounding box surrounding at least one corresponding image blob among the plurality of image blobs, and determining a subset of bounding boxes among the plurality of bounding boxes, associated with the corresponding moving object, using a fuzzy technique based on a perceptual characterization of the subset of bounding boxes. The method also includes merging the subset of bounding boxes to generate a merged bounding box enclosing the subset of bounding boxes to detect the moving object.