The recent advantage arising from the artificial intelligence revolution: saving American taxpayers billions of dollars. According to the U. S. Treasury Department, its enhanced use of artificial intelligence for fraud detection has helped prevent or recover over $4 billion in the last year. In a press release on Thursday, Treasury officials noted an increased focus on machine learning, which involves analyzing vast amounts of data to identify fraud patterns frequently exploited by criminals. The results are as follows: - $2. 5 billion saved by detecting and preventing high-risk transactions - $1 billion recouped from Treasury check-fraud schemes - $500 million in avoided losses through improved "risk-based" screening “Treasury takes our duty to be responsible stewards of taxpayer money very seriously, ” stated Deputy Secretary of the Treasury Wally Adeyemo. "Ensuring that agencies pay the right individual the correct amount at the appropriate time is a key part of our mission. " A Treasury spokesperson refrained from providing specific instances of how AI has been utilized, due to the sensitive nature of the targeted activities. The Department intends to share resources and the insights gained from its AI initiatives with other federal agencies. Online payment fraud is projected to exceed $362 billion cumulatively by 2028, according to Juniper Research, a UK-based consultancy.

Furthermore, check fraud in the U. S. has increased by 385% since the onset of the pandemic, as reported by the Treasury. Check fraud, involving both government and private funds, continues to rise, with an estimated $688 million in suspicious activities reported by chartered banks between February and August 2023. Treasury is following the lead of the Internal Revenue Service in utilizing advanced technology for financial improvements. Last year, the IRS announced it had begun to expand the use of AI to better identify tax evaders, recognize compliance issues, and enhance case selection tools "to spare taxpayers from unnecessary 'no-change' audits. "