Lawrence Damilola
The U.S. Department of Treasury announced yesterday that it recovered $4 billion in fraud and improper payments during the 2024 fiscal year using artificial intelligence (AI) technology.
This is a substantial increase from the previous year when the department recovered $652.7 million in fraudulent transactions.
According to Treasury official Renata Miskell, the department began quietly integrating machine learning AI in late 2022. The technology has been used to analyze large sets of data and detect patterns that indicate fraudulent behavior. “It’s really been transformative,” Miskell said, emphasizing that “leveraging data has upped our game in fraud detection and prevention.”
Miskell explained that fraudsters often attempt to manipulate the system in ways that are difficult to detect. The application of AI has allowed the Treasury to identify hidden patterns that human reviewers might miss. “Fraudsters are really good at hiding,” she said. “They’re trying to secretly game the system. AI and leveraging data helps us find those hidden patterns and anomalies.”
Treasury Uses AI-Powered Fraud Detection for Payment Review
The Treasury currently processes approximately 1.4 billion payments each year, with a total value of around $6.9 trillion. Deputy Secretary of the Treasury Wally Adeyemo stated that the department “takes seriously our responsibility to serve as effective stewards of taxpayer money,” noting the role of AI in these efforts.
In May 2024, the department revealed plans to expand its use of AI, aiming to improve government regulatory and enforcement efforts in the fight against financial crimes. AI technology also helped the department sift through enormous amounts of data quickly and more effectively identify improper payments.
Other Government Departments Adopting AI
Meanwhile, other U.S. government departments have also adopted AI-powered fraud detection initiatives. In September 2023, the Internal Revenue Service (IRS) announced its deployment of AI to review complex tax returns from hedge funds and law firms to identify tax evasion.
Juniper Research estimates that online payment fraud could surpass $362 billion by 2028, reinforcing the need for advanced technologies like AI in government efforts to combat financial fraud.
Overall, the Treasury’s use of AI is part of its ongoing efforts to safeguard taxpayer funds by identifying and recovering improper payments and preventing scam activity.
Read More
- Google Taps Nuclear Power to Fuel AI: WSJ
- No More Bitcoin Price Updates? Google Pulls the Plug on Crypto Charts
- Massive Data Breach: Hackers Compromise Sensitive Information of Over 77,000 Fidelity Customers
Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
