An Examination of How a New AI Tool Has Transformed the UK’s Fraud Recovery Efforts

The UK government announced that a new artificial intelligence tool has been used to recover almost £500 million lost to fraud over the last year. This figure, described as the largest sum ever reclaimed by government anti fraud teams in a single year, demonstrates the increasing reliance on technology to protect public finances from sophisticated fraudulent activity. The AI tool, called the Fraud Risk Assessment Accelerator, was developed by researchers in the Cabinet Office and is now being considered for use by international partners, including the United States and Australia.

The £500 million recovered comes from a variety of sources, with a significant portion related to fraudulent activity that occurred during the COVID 19 pandemic. The government has long vowed to claw back money lost to fraud during this period, particularly from programs like the Bounce Back Loan scheme. In one example, the AI tool identified a woman who invented a company to secure a loan and then transferred the money to Poland. The government’s new technology also helped reclaim funds from unlawful council tax claims and illegal subletting of social housing. Cabinet Office minister Josh Simons will announce the savings at an anti fraud summit held jointly by the UK, the U.S., Canada, Australia, and New Zealand.

The Fraud Risk Assessment Accelerator works by scanning new policies and procedures for weaknesses before they can be exploited. This proactive approach aims to make government policies "fraud proof" before they are even implemented, a crucial step in preventing future losses. The development of this tool was spurred by concerns within Whitehall about the unprecedented level of fraud seen during the pandemic. The UK government plans to license the technology for international use, with the U.S., Canada, Australia, and New Zealand all expected to adopt it in some capacity.

While the government celebrates the success of the new tool, it is important to note that the use of AI in government has raised some concerns. Critics and civil liberties campaigners have previously criticized the use of AI in countering welfare fraud, pointing to instances where a similar tool showed bias based on a person's age, disability, marital status, and nationality. The government has reassured the public that the new accelerator will not replace human judgment, but will instead be used to augment the capabilities of human investigators.