Recently, the U.S. Treasury Department announced that by utilizing artificial intelligence (AI) technology, they successfully recovered $4 billion in fraudulent and improper payments during the 2024 fiscal year. This figure represents a significant increase from the $652.7 million recovered in the previous fiscal year, demonstrating the notable effectiveness of AI in combating financial fraud.
Image source: Picture generated by AI, authorized service provider Midjourney
Treasury officials stated that since the end of 2022, they have been quietly using machine learning technology to analyze vast amounts of data to identify and prevent fraudulent activities. Officer Renata Miskell, in an interview with CNN, said: "The shift in technology is enormous. Utilizing data has led to a qualitative leap in fraud detection and prevention." She also mentioned that fraudsters are adept at hiding their tracks, and AI helps them uncover hidden patterns and anomalies, effectively preventing these fraudulent acts.
Deputy Treasury Secretary Wally Adeyemo also emphasized their responsibility as effective managers of taxpayer funds. He stated that the Treasury handles approximately 1.4 billion payments annually, totaling $6.9 trillion. To further enhance anti-fraud capabilities, the Treasury announced in May that it would expand the use of AI to strengthen oversight and enforcement of financial crimes.
Moreover, the U.S. is not the only department utilizing AI for anti-fraud efforts. In September 2023, the IRS also indicated that they use AI technology to identify tax fraud, particularly in complex hedge funds and law firm tax filings, using AI to review large amounts of data.
According to a report by Juniper Research, it is estimated that by 2028, the total amount of online payment fraud will exceed $362 billion. This makes the efforts of government departments in anti-fraud even more crucial.
Key Points:
💰 The U.S. Treasury used AI to successfully recover $4 billion in fraudulent payments, significantly enhancing the effectiveness of fraud combat.
🤖 AI technology has been in use since the end of 2022, aiding in the identification of hidden fraud patterns.
🏦 The Treasury handles 1.4 billion payments annually and continues to expand AI applications to strengthen financial regulation.
