The US Treasury Department utilized AI to prevent $4bn in improper payments and tax fraud in fiscal year 2024.
The US Treasury Department revealed that it successfully thwarted $4bn in improper payments and tax fraud using artificial intelligence (AI) in the fiscal year 2024, marking a substantial increase from previous years. Specifically, the technology helped recover $1.3bn in tax fraud during the same period.
Finding ‘hidden patterns’
In a statement, Treasury official Renata Miskell emphasized the transformative impact of AI technology in detecting fraudulent activities. The innovative technology enables the agency to uncover hidden patterns and anomalies that fraudsters use to deceive the system, ultimately preventing fraudulent transactions.
Notably, the US Treasury Department distributed over $6.9 trillion through 1.4 billion payments annually, underscoring the importance of preventing improper payments and fraud to effectively steward taxpayer money.
While the US Treasury Department is leveraging AI to combat financial crime, other agencies like the Internal Revenue Service (IRS) are also utilizing advanced technology to crack down on tax fraud, with plans to enhance auditing processes in the future.