Treasury Recovers $375 Mln In FY23 Using AI-enabled Fraud Detection

The U.S. Department of the Treasury announced that it has recovered more than $375 million with the implementation of an enhanced fraud detection process using Artificial Intelligence (AI) during Fiscal Year 2023.

The Treasury said that to address the increase in check fraud in recent years, it’s Office of Payment Integrity (OPI), within the Bureau of the Fiscal Service (Fiscal Service), implemented an enhanced process using AI in near real-time by strengthening and expediting processes to recover potentially fraudulent payments from financial institutions.

Check fraud has increased nationwide by 385 percent since the pandemic, according to the Treasury.

In 2021, financial institutions filed more than 350,000 Suspicious Activity Reports (SARs) to FinCEN to report potential check fraud.

This upward trend continued into 2022, when the number of SARs related to check fraud crossed 680,000, nearly double from the previous year’s filings.

Incidents of Treasury check fraud are also on the rise, the Treasury said. The enhanced AI process and OPI’s strong partnership with federal law enforcement agencies have led to multiple active cases and arrests with law enforcement, it added.

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