The US Treasury Department has announced that the implementation of AI tools has successfully prevented criminals from stealing $4 billion in taxpayer dollars this year, a significant increase from the $653 million prevented last year. According to Renata Miskell, a top Treasury official, these tools have been “transformative” in identifying high-risk transactions, expediting check fraud, implementing efficiencies, and expanding risk-based screenings. Unlike generative AI, such as ChatGPT, these tools are machine learning-based and have been adopted by leading banks and credit card companies.
The Treasury is a prime target for financial fraud due to its distribution of large sums of cash for programs like Social Security, Medicaid, tax refunds, federal paychecks, and stimulus checks. The adoption of AI technology has helped to address gaps in the system and has been crucial in mitigating fraud and improper payments, which have been on the rise since the pandemic. The IRS is currently investigating an estimated $9 billion in fraud cases related to pandemic-era stimulus checks and loans, while online payment fraud is expected to reach $362 billion by 2028.
Deputy Secretary of the Treasury Wally Adeyemo emphasizes the importance of the Treasury’s responsibility to effectively manage taxpayer money, stating that “helping ensure that agencies pay the right person, in the right amount, at the right time is central to our efforts.” In May 2024, the Treasury announced a data-sharing partnership with the Department of Labor to provide state unemployment agencies with a more robust system. Adeyemo also highlights the Treasury’s commitment to collaborating with other federal agencies to equip them with the necessary tools, data, and expertise to combat financial fraud.
The IRS is also ramping up its use of AI, with plans to debut a new system in 2023 to identify high-income earners and wealthy corporations evading taxes. As the expert at PCMag for electric vehicles and AI, I have covered hundreds of articles on these topics, including product reviews, daily news, CEO interviews, and in-depth features. I also keep a pulse on emerging technologies that could shape our future.
