The United States Department of Treasury successfully leveraged artificial intelligence to reclaim $4 billion in fraud and improper payments during the 2024 fiscal year. This remarkable recovery marks a significant uptick from the previous fiscal year's $652.7 million.
Late 2022 saw the Treasury's quiet adoption of machine learning AI. This technology excels in analyzing extensive datasets and making informed predictions. According to the Treasury's Office of Payment Integrity (OPI), this strategic move has revolutionized their fraud detection capabilities.
Renata Miskell, a Treasury official, explained to CNN that their enhanced data strategies have significantly boosted their efforts in preventing fraud. "Fraudsters are adept at concealing their actions," she noted. "AI helps us uncover hidden patterns and anomalies."
Deputy Secretary of the Treasury, Wally Adeyemo, underscored the agency's commitment to responsibly managing taxpayer funds. This comes as Juniper Research forecasts online payment fraud to exceed $362 billion by 2028. In response, the Treasury processes approximately 1.4 billion payments annually, valued at $6.9 trillion. Plans are underway to further incorporate AI in combating financial crimes.
The US Treasury is not alone in this technological adoption. As of September 2023, the Internal Revenue Service also employed AI to scrutinize complex tax returns from hedge funds and law firms.
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