AI helped the U.S. Treasury Department identify $4 billion in fraud, including $1 billion from check fraud, in fiscal 2024. marking a significant increase from the previous year. The technology’s growing effectiveness in detecting financial crime demonstrates its importance in safeguarding public funds.
By using machine learning to analyze large datasets, the Treasury can quickly spot patterns and anomalies, significantly boosting fraud prevention efforts. This approach is critical for safeguarding taxpayer money, given the vast number of payments the department processes.
The Treasury Department uses AI to detect suspicious behavior, with human officials making final decisions. It is also collaborating with state agencies to improve fraud detection in programs like unemployment insurance. To prevent alerting fraudsters, the department keeps its methods confidential. Beyond check fraud, AI is being used to detect and prevent a wide range of financial crimes, including money laundering, identity theft, and cyberattacks. As AI technology continues to advance, it is expected to play an increasingly important role in safeguarding the global financial system.
