The US Treasury recovers $4B in fiscal year 2024 using AI and machine learning to detect and prevent fraud, marking a huge leap in financial security innovation.
In a remarkable feat of innovation, the U.S. Department of the Treasury has harnessed the power of artificial intelligence to recover a staggering $4 billion in fraudulent and improper payments in fiscal year 2024. By leveraging AI, the Treasury significantly enhanced its fraud detection capabilities, quadrupling its recovery compared to the previous year.
Key Points:
The Treasury’s Use of AI Leads to $4 Billion Fraud Recovery:
The U.S. Department of the Treasury’s adoption of artificial intelligence led to an impressive recovery of $4 billion in fraudulent and improper payments during the 2024 fiscal year. This massive leap, nearly quadruple the amount recovered in the previous year, demonstrates the transformative potential of AI in financial oversight and fraud prevention.
Machine Learning AI Enhances Fraud Detection:
The Treasury began using machine learning AI technology in late 2022, a system designed to sift through vast amounts of payment data. This advanced AI specializes in identifying patterns, detecting anomalies, and making data-driven predictions to uncover hidden fraudulent activities. The use of AI has significantly increased the agency’s ability to spot complex fraud schemes that could otherwise go undetected.
Impact on Treasury Operations:
With the Treasury handling 1.4 billion payments annually, amounting to $6.9 trillion, fraud detection is a crucial task. By leveraging AI, the Treasury has dramatically enhanced its ability to protect taxpayer money and prevent improper payments. This AI-driven system allows for the identification of fraud in real-time, making it easier to take immediate action.
AI as a Tool for Future Financial Crime Prevention:
The Treasury plans to further expand the use of AI in future regulatory and enforcement efforts, particularly to combat financial crimes. This initiative reflects a broader trend of government agencies adopting AI technology to strengthen fraud detection and protect public funds from misuse.
Other Government Agencies Turning to AI:
The Treasury isn’t the only federal agency using AI. In September 2023, the IRS announced the use of AI to detect complex tax evasion schemes, targeting large businesses, hedge funds, and law firms. The AI helps the IRS analyze vast datasets and identify anomalies that could indicate tax fraud, further showcasing the growing adoption of AI across U.S. government agencies.
As fraudsters evolve, so must the strategies to combat them. With AI on its side, the U.S. Treasury is leading the charge in financial security innovation, demonstrating the technology's immense potential in protecting taxpayer funds.
Source: Cointelegraph
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