US Treasury Achieves Milestone in Fraud Prevention for FY 2024
In a significant announcement, the US Department of the Treasury reported the prevention and recovery of over $4 billion related to fraud and improper payments during the fiscal year 2024. This success was largely driven by advancements in machine learning and artificial intelligence (AI) technologies.
Key Highlights from the FY 2024 Report
- The total amount of $4 billion comprises funds that were both recovered and those thwarted before any fraudulent transactions could be processed.
- This achievement represents a remarkable increase from the $652.7 million managed in the previous fiscal year (2023).
- The Treasury’s enhanced focus on fraud prevention strategies has played a crucial role in this increase.
According to the Treasury’s statement issued on October 17, 2023, these efforts span the period from October 2023 to September 2024, indicating a robust response to the evolving landscape of financial fraud.
Innovative Strategies in Fraud Prevention
During FY 2024, the Treasury implemented an expanded risk-based screening approach, which successfully safeguarded $500 million from potential fraud. Prioritizing high-risk transactions also resulted in the prevention of an additional $2.5 billion in fraudulent activities.
Utilization of AI and Machine Learning
The Treasury reported leveraging AI-driven machine learning technologies to facilitate the recovery of $1 billion associated with Treasury check fraud. Additionally, improved payment processing schedules contributed to preventing an extra $180 million in fraudulent actions.
The Rising Threat of Financial Fraud
This progress comes amid a worrying trend where global financial fraud is on the rise, with estimates suggesting that online payment fraud could surpass a cumulative total of $362 billion by 2028. In response, the Treasury is emphasizing the need for integrating emerging technologies to enhance fraud mitigation strategies.
Partnerships and Future Initiatives
The Treasury is actively working to strengthen its payment integrity systems by establishing partnerships. In May 2023, it initiated a data-sharing agreement with the Department of Labor as part of these efforts.
Commitment to Responsible Stewardship
Treasury Deputy Secretary Wally Adeyemo underscored the department’s dedication to responsibly managing public funds. He stated:
“Treasury takes seriously our responsibility to serve as effective stewards of taxpayer money. Helping ensure that agencies pay the right person, in the right amount, at the right time is central to our efforts.”
Statistics and Impact
The Treasury currently processes about 1.4 billion payments each year, amounting to a total value of $6.9 trillion for over 100 million Americans.
Conclusion
The proactive measures taken by the US Department of the Treasury signify an important step forward in combating financial fraud, ensuring the integrity of taxpayer funds, and utilizing technological advancements to safeguard the economy.
