The US Department of the Treasury has announced a significant milestone in fraud prevention and recovery efforts, utilizing machine learning and artificial intelligence (AI) technologies to stop and retrieve over $4 billion in fraudulent and improper payments during the 2024 fiscal year. This represents a substantial increase from the $652.7 million prevented and recovered in the previous fiscal year, showcasing the Treasury’s enhanced focus on safeguarding customer transactions.
Throughout the fiscal year 2024, the Treasury expanded its risk-based screening process, leading to the prevention of $500 million in potential fraud. By prioritizing high-risk transactions, the department successfully prevented $2.5 billion in fraudulent activity. In addition, the implementation of AI-driven machine learning technology accelerated the recovery of $1 billion associated with Treasury check fraud, while more efficient payment processing schedules helped prevent another $180 million in fraudulent transactions.
These achievements are particularly noteworthy in the current landscape of increasing financial fraud globally, with online payment fraud projected to exceed $362 billion by 2028. In response to these growing threats, the Treasury is leveraging emerging technologies like AI and machine learning to proactively address and mitigate risks in financial transactions.
To further strengthen its payment integrity systems, the Treasury is actively seeking partnerships with other government agencies. In May 2023, the department initiated a data-sharing agreement with the Department of Labor to enhance collaborative efforts in combating fraudulent activities.
Deputy Secretary of the Treasury, Wally Adeyemo, underscored the department’s dedication to effectively managing taxpayer funds, emphasizing the importance of ensuring accurate and timely payments to the rightful recipients. With approximately 1.4 billion payments processed annually, totaling $6.9 trillion for over 100 million individuals, the Treasury plays a crucial role in upholding financial integrity and accountability.
As the Treasury continues to advance its fraud prevention strategies through innovative technologies and strategic partnerships, its commitment to protecting public funds and maintaining payment accuracy remains unwavering. By harnessing the power of AI and machine learning, the department aims to stay ahead of evolving threats and secure financial transactions for all stakeholders involved in the payment ecosystem.
