AI in Fraud Prevention
The utilized advanced machine learning AI, leading to the recovery of over $4 billion in fraud and improper payments in fiscal 2024, marking a significant increase from the previous year.
Efforts included expediting check fraud identification and expanding risk-based screening, demonstrating a strategic shift towards technology-driven solutions for fraud prevention.
Future Focus and Challenges
The Treasury aims to strengthen partnerships and enhance the use of AI to further mitigate fraud risks, especially with online payment fraud expected to rise significantly by 2028.
Despite the success, concerns about AI's potential risks to financial system stability persist, underscoring the need for balanced oversight and human intervention in fraud detection processes.