The US Treasury’s AI tools helped prevent $4 billion in taxpayer fraud this year, a significant rise from $653 million in 2022, according to Treasury officials.
These machine learning-based systems have been instrumental in identifying high-risk transactions, tackling check fraud, and implementing faster, risk-based screenings.
The Treasury is a frequent target for fraud due to its role in managing large financial payouts, such as Social Security, Medicaid, and tax refunds. The AI tools, which do not use generative models like ChatGPT, have helped streamline processes and prevent improper payments.
Fraud has risen since the pandemic, with $9 billion still under investigation from stimulus check and loan programs. The IRS is also increasing AI use to combat tax evasion by wealthy individuals and corporations.
