US Treasury’s AI tools recover $1 billion in fraudulent payments

Oct 18

Craig Nigrelli Reporter

By Craig Nigrelli (Reporter), Alex Delia (Producer), Jack Henry (Video Editor)

The U.S. Treasury Department has ramped up efforts to combat fraudulent payments by deploying artificial intelligence to detect suspicious transactions. This new approach has led to the prevention and recovery of over $4 billion in fraudulent payments during fiscal year 2024, a significant increase from the previous year.

Bias Distribution Powered by Ground News™

The Treasury’s Office of Payment Integrity reported that $1 billion of the recovered funds were directly attributed to the AI-based system implemented at the start of the 2023 fiscal year. Last year, the department recovered just over $652 million, showcasing a six-fold improvement in fraud detection efficiency.

Officials cited an increase in fraudulent activity since the pandemic as the main reason for adopting AI tools, which have been instrumental in identifying and stopping high-risk transactions.

Download the SAN app today to stay up-to-date with Unbiased. Straight Facts™.

Point phone camera here

In addition to detecting fraud, the AI system also enhanced payment scheduling processes, resulting in an additional recovery of $180 million. Treasury officials emphasized the department’s commitment to protecting taxpayer money and preventing improper payments. Officials also noted that, while AI is used to combat fraud, it is often leveraged by fraudsters as well, leading to an ongoing battle to stay ahead of sophisticated schemes.

In partnership with law enforcement, the Treasury’s efforts have led to multiple arrests and active investigations. The department plans to continue expanding its use of AI tools to safeguard taxpayer funds, particularly as online payment fraud is projected to exceed $362 billion by 2028.

Tags: AI, Artificial Intelligence, Big Tech, Fraud, Tax Fraud, Taxes, taxpayer funds, Tech, Technology

[Craig Nigrelli]

IN AN EFFORT TO CRACK DOWN ON FRAUD, THE U-S TREASURY DEPARTMENT IS USING ARTIFICIAL INTELLIGENCE TO DETECT FRAUDULENT TRANSACTIONS MORE EFFECTIVELY. AND THE RESULTS HAVE BEEN IMPRESSIVE.

THE TREASURY’S OFFICE OF PAYMENT INTEGRITY PREVENTED AND RECOVERED OVER 4 BILLION DOLLARS FROM FRAUDULENT PAYMENTS THIS YEAR. 1 BILLION DOLLARS OF THAT BOUNTY IS CREDITED TO A NEW A-I BASED SYSTEM INTRODUCED AT THE START OF FISCAL YEAR 2023.

LAST YEAR, A LITTLE OVER 650-MILLION WAS RECOVERED BY THE DEPARTMENT, SHOWCASING A SIX-FOLD INCREASE IN EFFICIENCY.

OFFICIALS SAY SURGES IN FRAUDULENT ACTIVITY SINCE THE PANDEMIC PROMPTED THE DEPARTMENT TO USE A-I TO IDENTIFY SUSPICIOUS TRANSACTIONS IN NEAR REAL-TIME. IN MANY CASES, A-I TOOLS ARE ALSO BEING USED TO CONDUCT THE FRAUDULENT ACTIVITY IN THE FIRST PLACE. IN PARTNERSHIP WITH LAW ENFORCEMENT, THESE EFFORTS HAVE ALREADY LED TO MULTIPLE ARRESTS AND ONGOING INVESTIGATIONS.

IN ADDITION TO FINDING PATTERNS IN FRAUDULENT ACTIVITY, THE TOOLS WERE ALSO USED TO FOR MORE EFFICIENT PAYMENT SCHEDULING… RESULTING IN AN ADDITIONAL RECOVERY OF 180-MILLION DOLLARS. THE DEPUTY SECRETARY OF THE TREASURY EMPHASIZED THE TOOLS’ ROLE IN SAFEGUARDING TAXPAYER MONEY AND PREVENTING IMPROPER PAYMENTS.

OFFICIALS SAY THEY’LL CONTINUE USING THESE TOOLS TO RECOVER EVEN MORE TAXPAYER DOLLARS AND CRACK DOWN ON FRAUDSTERS. ONLINE PAYMENT FRAUD IS PROJECTED TO SURPASS 362 BILLION CUMULATIVELY BY 2028.

FOR MORE UNBIASED UPDATES AND STRAIGHT FACTS… DOWNLOAD THE STRAIGHT ARROW NEWS APP OR VISIT SAN DOT COM.

FOR STRAIGHT ARROW NEWS… I’M CRAIG NIGRELLI.