The Treasury Department has recently implemented a new tool in its fight against fraud - artificial intelligence. This innovative approach has proven to be a significant asset for the federal government. Beginning in late 2022, the Treasury quietly introduced AI-powered fraud detection methods aimed at identifying and apprehending fraudsters attempting to defraud the government.
The utilization of AI technology has yielded substantial results, particularly in the detection of check fraud. In fiscal year 2023 alone, the AI-powered methods facilitated the recovery of $375 million and led to multiple arrests. This marks the first public acknowledgment by the Treasury of its use of AI to combat financial crime, a strategy commonly employed by banks, credit card companies, and other private sector entities.
