Treasury Leverages AI to Detect Fraud and Recover $375 Million
• Treasury Department began using AI-powered fraud detection in late 2022, recovering $375 million in fiscal 2023 • AI allows Treasury to spot suspicious transactions and halt check fraud almost instantly by detecting unusual patterns • Fraud spiked during Covid, with estimated $135B in fraudulent unemployment claims and $200B in PPP fraud • Treasury disbursed $6.9 trillion in payments in 2022, making it a huge target for fraudsters • Private sector also using AI for fraud detection, but regulators worried AI could also boost financial crimes