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10/24/2024
U.S. Fights Rising Check Fraud Through Use of AI
Payments Journal
Artificial intelligence is having a huge impact on the U.S. federal government’s fraud detection efforts. The Treasury Department credited AI with helping officials prevent and recover more than $4 billion in fraud during fiscal 2024 alone—six times the amount recovered in the previous year.
And it’s not just digital payments that are subject to AI’s scrutiny. According to CNN, machine learning technology helped the Treasury recover $1 billion in check fraud in fiscal 2024, nearly tripling the amount recovered the year prior.
The U.S. federal government is one of the largest issuers of checks in the world, making fraud detection a particularly acute issue. Last year, the Treasury disbursed 1.4 billion payments totaling $6.9 trillion, covering everything from Social Security payments to tax refunds.
Along with the sheer volume of checks issued, the government also maintains a tremendous amount of data related to these programs, which fuels its AI fraud detection efforts.
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