Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Top News
Top News
Politics

Treasury Department Deploys AI To Combat Fraud

The U.S. Treasury Department building is shown at dusk in Washington on June 6, 2019. The U.S. on Tuesday, Dec. 5, 2023, imposed sanctions on a Belgian involved in procuring electronics for the Russia

The Treasury Department has recently implemented a new tool in its fight against fraud - artificial intelligence. This innovative approach has proven to be a significant asset for the federal government. Beginning in late 2022, the Treasury quietly introduced AI-powered fraud detection methods aimed at identifying and apprehending fraudsters attempting to defraud the government.

The utilization of AI technology has yielded substantial results, particularly in the detection of check fraud. In fiscal year 2023 alone, the AI-powered methods facilitated the recovery of $375 million and led to multiple arrests. This marks the first public acknowledgment by the Treasury of its use of AI to combat financial crime, a strategy commonly employed by banks, credit card companies, and other private sector entities.

Furthermore, the Internal Revenue Service (IRS) has also embraced AI technology to combat tax evasion. Last September, the IRS announced its deployment of AI to identify tax cheats. It is important to note that the AI utilized by the government differs from the high-profile AI applications seen in popular media, such as Google's Gemini or open AI's projects. The government's AI implementation focuses on big data analysis and machine learning.

Fraud has become a pressing issue, particularly exacerbated by the COVID-19 pandemic. Fraudsters capitalized on the substantial financial aid distributed by the federal government, leading to a surge in check fraud cases, which increased by 385% since the onset of the pandemic. AI technology plays a crucial role in combating fraud due to its ability to swiftly analyze vast amounts of data, identify suspicious patterns, and alert authorities promptly.

Security experts emphasize the efficiency of AI models in detecting anomalies within milliseconds once trained. This rapid response capability has enabled the Treasury to identify irregularities, notify financial institutions, and prevent fraudulent checks from being cashed. The ongoing success of AI in fraud detection indicates that this technology is still in its nascent stages, with immense potential for further development and enhancement.

The Treasury Department welcomes the assistance provided by AI technology in combating fraud, recognizing the critical role it plays in safeguarding government funds and maintaining financial integrity. The continuous evolution and refinement of AI applications in fraud detection signify a promising trajectory in the government's efforts to mitigate financial crimes effectively.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.