WASHINGTON (dpa-AFX) - The U.S. Department of the Treasury announced that its latest efforts in taking a technology and data-driven approach has enabled the prevention and recovery of more than $4 billion in fraud and improper payments this fiscal year.
This is nearly six times higher than $652.7 million achieved in FY23.
This increase reflects dedicated efforts by Treasury's Office of Payment Integrity (OPI), within the Bureau of the Fiscal Service (Fiscal Service) to enhance its fraud prevention capabilities and expand offerings to new and existing customers, the Treasury said.
The Treasury estimates that expanding risk-based screening has resulted in preventing $500 million in fraud and improper payments.
Identifying and prioritizing high-risk transactions resulted in $2.5 billion in prevention.
By expediting the identification of Treasury check fraud with machine learning AI helped the Treasury to recover $1 billion.
Implementing efficiencies in payment processing schedule has resulted in $180 million in prevention.
'We've made significant progress during the past year in preventing over $4 billion in fraudulent and improper payments. We will continue to partner with others in the federal government to equip them with the necessary tools, data, and expertise they need to stop improper payments and fraud,' said Deputy Secretary of the Treasury Wally Adeyemo.
As the federal government's central disbursing agency, Treasury securely disburses approximately 1.4 billion payments valued at over $6.9 trillion dollars to more than 100 million people annually.
Treasury said that at a time when losses from fraud in the financial sector continue to rise every year, with online payment fraud expected to cumulatively surpass $362 billion by 2028, it is uniquely positioned to support federal programs proactively mitigate the risk of financial fraud by leveraging data and emerging technologies.
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