简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract:The U.S. Treasury's use of AI for fraud detection leads to a significant increase in recovery, reaching $1 billion in fiscal 2024, thanks to machine learning.
The U.S. Treasury Department has achieved significant success in combating financial crime by adopting artificial intelligence (AI), recovering an impressive $1 billion in check fraud during fiscal year 2024. This marks a nearly threefold increase compared to the previous year and underscores the transformative role AI plays in fraud detection.
Treasury officials attribute much of this success to machine learning, which enabled the department to detect and prevent over $4 billion in fraud—a sixfold increase from the prior fiscal year. Renata Miskell, a senior Treasury official, emphasized that AI's ability to identify hidden patterns and anomalies in vast datasets has substantially improved the department's fraud detection capabilities.
The Treasury‘s journey into AI began in late 2022, aligning its efforts with the established practices of banks and credit card companies. Unlike generative AI models, which focus on generating text and images, the Treasury's system employs machine learning to analyze data and identify suspicious activity at speeds far beyond human capability. This speed is crucial, given the Treasury’s responsibility for managing an annual payment volume of around $7 trillion, including Social Security payments, tax refunds, and federal payroll.
The rise in fraud, particularly following the COVID-19 pandemic, has highlighted the importance of AI in protecting taxpayer dollars from scams. Despite these advancements, concerns about AIs potential misuse by bad actors have surfaced. Treasury Secretary Janet Yellen and other officials have warned about the risks AI could pose to the financial system.
In response, Miskell assured that human oversight remains a critical part of the process. Every flagged transaction undergoes a thorough review by a human before any determination of fraud is made, ensuring that AI enhances, rather than replaces, human judgment.
As the Treasury expands its AI initiatives, it is working with state agencies to improve fraud detection tools, especially in areas like unemployment insurance fraud. The IRS has also announced plans to use AI to identify tax evasion schemes, reflecting a broader trend among federal agencies to adopt technology for financial oversight.
Final Thoughts
The U.S. Treasurys successful integration of AI in fraud detection demonstrates the power of technology to strengthen financial security while highlighting the need for balanced human oversight. As fraud schemes grow more sophisticated, the continuous evolution of AI tools and practices will be essential to protecting taxpayer funds and maintaining trust in the financial system.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
The German Federal Financial Supervisory Authority (BaFin) has recently flagged a fraudulent clone of the licensed retail FX and CFD broker Pepperstone. This fake entity, operating under the domain pepperstone.life, has been offering financial and investment services without obtaining the necessary regulatory authorisation.
The Royal Malaysian Police (PDRM) have raised concerns over the increasing use of TikTok by criminal syndicates to lure victims into investment scams.
With 7M UK adults holding cryptocurrency, the FCA outlines a robust plan to regulate crypto markets, stablecoins, and staking by 2026, aligning with global trends.
Webull Canada now offers extended trading hours from 4 a.m. to 5:30 p.m. ET, plus options trading. Gain flexibility and manage risk in an ever-changing market.