US Treasury Boosts Fraud Prevention Efforts With AI Technology
By: Eliza Bennet
The United States Department of the Treasury has reported remarkable success in combating fraud and improper payments by deploying advanced technologies like machine learning and artificial intelligence (AI). During the 2024 fiscal year, the department effectively prevented and recovered fraudulent transactions exceeding $4 billion, showcasing a significant leap from the $652.7 million it managed to handle in the previous fiscal year. This progress was largely due to an enhanced risk-based screening process and prioritization of high-risk transactions that heavily exploit AI-driven solutions.
According to a statement released by the Treasury on October 17, the concerted efforts to safeguard public funds have led to stopping $2.5 billion in fraudulent activities before they could occur, thanks to effective deployment of AI technologies. The Treasury's dedication to refining its payment integrity systems further reflects its commitment to safeguarding taxpayer money effectively. The emphasis on technology aligns with global trends as online payment fraud is expected to surpass $362 billion cumulatively by 2028. Notably, these initiatives are part of a broader strategy to utilize emerging technologies to address rising financial fraud worldwide.
In addition to transaction monitoring, the Treasury has employed AI-driven machine learning to recover $1 billion tied to check fraud. The implementation of optimized payment processing schedules bolstered the capabilities further, leading to the prevention of another $180 million in fraudulent activities. Such advancements illustrate the Treasury's proactive stance in addressing financial fraudulent activities, bolstered by innovative data analytics and predictive machine learning models.
Looking ahead, the Treasury aims to strengthen its systems through collaborations, like its data-sharing agreement with the Department of Labor initiated in May 2023, which exemplifies its ongoing strategy to enhance payment security. Deputy Secretary Wally Adeyemo underscored the importance of these efforts in sustaining public trust, emphasizing the department's commitment to ensuring precise payments to the right individuals at the right time. With the Treasury managing around 1.4 billion payments annually, worth approximately $6.9 trillion, the continued reliance on technology seems imperative to safeguard financial transactions effectively.
