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AI’s Role in Fraud Prevention: US Treasury Reports Significant Financial Recoveries
Recent developments in artificial intelligence (AI) have raised eyebrows, particularly when technology often seems to be leveraged for deceitful purposes. However, the US Treasury Department is now highlighting a more positive aspect of AI, noting that machine learning AI has played a critical part in enhancing its fraud detection efforts over the past year.
In its latest report, the Treasury revealed successful prevention and recovery of more than $4 billion related to “fraud and improper payments” during the fiscal year spanning from October 2023 to September 2024. This figure marks a significant jump from the previous year’s recovery total of $652.7 million, indicating a dramatic improvement in the Department’s capabilities. Notably, approximately one-quarter of the $4 billion was attributed to swift identification of Treasury check fraud aided by machine learning algorithms.
In further breakdown, the report cited that $1 billion of the total was secured through enhanced measures, with an additional $2.5 billion achieved through the early detection and prioritization of high-risk transactions. Moreover, almost $680 million was allocated to various other preventative strategies. This financial uptick illustrates the potential of AI in transforming agency operations, providing a glimmer of hope amidst concerns about technology’s role in fraud.
The Treasury intends to disseminate this AI technology across other federal agencies, although some, like the IRS, have already begun employing their AI initiatives. The IRS has made strides in utilizing AI to track down tax evaders, automate service processes, and streamline audit procedures.
As the 2024 landscape unfolds, the partnership between AI and government agencies may redefine approaches to combating fraud. While it remains critical to approach these advancements with caution, the potential for technology to contribute positively to public service is becoming increasingly evident.
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www.engadget.com