The US Treasury Department claims to have recovered billions of dollars lost to fraud using AI
The US Treasury Department announced this machine learning AI is used as part of the fraud detection process, saving a record amount of money for the department.
As a result, the department claims to have recovered more than $4 billion in improper payments, and $1 billion of that is said to be a direct result of the machine learning AI identifying likely cases of check fraud.
The department also claims to have prevented $2.5 billion by identifying and prioritizing high-risk transactions and expanding risk-based screening, resulting in $500 million in prevention.
Improved capabilities
Government departments across the country are adopting AI in their processes. For example, Nevada’s state employment agency is using AI in its benefits appeals process, which critics say could be less effective but just as time-consuming.
Recent reports have shown that AI has made financial fraud significantly easier, so using AI to fight criminals seems like the logical next step.
“The Treasury Department takes seriously our responsibility to serve as effective stewards of taxpayer dollars. Ensuring that agencies pay the right person, in the right amount, at the right time is central to our efforts,” said Deputy Secretary of the Treasury Wally Adeyemo.
The AI process is likely inspired by similar fraud detection used in the banking industry, which the Treasury has quietly adopted over the past two years.
This is likely just the beginning of a new era of machine bureaucracy, as the Treasury Department and the Department of Labor have announced a data-sharing partnership.
“We will continue to work with others across the federal government to equip them with the necessary tools, data and expertise they need to stop improper payments and fraud.” added Adeyemo.