On October 17, 2024 Treasury announced that its Office of Payment Integrity, within the Bureau of the Fiscal Service, prevented and recovered over $4 billion in fraud and improper payments in fiscal 2024 (October 2023 to September 2024), up from $652.7 million in FY2023. Machine-learning AI that expedites identification of Treasury check fraud accounted for $1 billion in recoveries; risk-based screening prevented $500 million, prioritizing high-risk transactions prevented $2.5 billion, and payment-schedule efficiencies prevented $180 million. Treasury disburses about 1.4 billion payments worth over $6.9 trillion a year.
| Document | Treasury $4B AI fraud-prevention announcement (Oct 2024) — Treasury Announces Enhanced Fraud Detection Processes, Including Machine Learning AI, Prevented and Recovered Over $4 Billion in Fiscal Year 2024 |
| Issued by | U.S. Department of the Treasury (including the Financial Stability Oversight Council) |
| Type | Report |
| Status | Final |
| Published | Oct 17, 2024 |
| Applies to | Federal payment programs served by the Bureau of the Fiscal Service; a reference point for banks' own AI fraud-detection programs |
| Official source | home.treasury.gov ↗ |
| Use cases | Fraud detection · AML / KYC |
What are the key points of Treasury $4B AI fraud-prevention announcement (Oct 2024)?
- FY2024 prevention and recovery: over $4 billion, versus $652.7 million in FY2023
- Machine-learning detection of Treasury check fraud: $1 billion recovered
- Identifying and prioritizing high-risk transactions: $2.5 billion prevented
- Expanded risk-based screening: $500 million prevented; payment-schedule efficiencies: $180 million prevented
- Run by the Office of Payment Integrity in the Bureau of the Fiscal Service, with Do Not Pay data shared with state unemployment agencies since May 2024
- Later cited in FSOC's 2025 annual report as an example of a government agency using AI for fraud detection
What did Treasury $4B AI fraud-prevention announcement (Oct 2024) change for banks?
This is the clearest official benchmark for AI-driven fraud detection at scale in the U.S. payments system and is frequently cited by regulators and bank executives when justifying AI fraud investments. It also underpins Treasury's later position, in FSOC's 2025 report and the 2026 AIEOG fraud workstream, that AI is a fraud-fighting asset banks should be able to deploy.
How much fraud did Treasury's AI catch in 2024?
Machine-learning AI used to identify Treasury check fraud drove $1 billion in recoveries; overall, enhanced data-driven processes prevented or recovered over $4 billion in fraud and improper payments in fiscal 2024.
Which Treasury office runs the AI fraud detection program?
The Office of Payment Integrity within the Bureau of the Fiscal Service, which also operates the Do Not Pay service.
| Date | Document | Status |
|---|---|---|
| Jun 24, 2026 | FSOC AI Innovation Series (Mar–May 2026) — Artificial Intelligence Innovation Series — FSOC and Treasury AI Transformation Office roundtables | Final |
| Feb 19, 2026 | Treasury FS AI RMF and AI Lexicon (Feb 2026) — Financial Services AI Risk Management Framework (FS AI RMF) and Artificial Intelligence Lexicon | Final |
| Dec 11, 2025 | FSOC 2025 Annual Report — Financial Stability Oversight Council 2025 Annual Report — Section 3.4, Harnessing Artificial Intelligence to Promote Financial Stability | Final |
| Dec 19, 2024 | Treasury AI in Financial Services report (Dec 2024) — Artificial Intelligence in Financial Services — Report on the Uses, Opportunities, and Risks of AI in the Financial Services Sector | Final |
| Dec 6, 2024 | FSOC 2024 Annual Report — Financial Stability Oversight Council 2024 Annual Report — Section 3.3.3, The Use of Artificial Intelligence in Financial Services | Superseded |
| Jun 12, 2024 | Treasury AI RFI (June 2024) — Request for Information on Uses, Opportunities, and Risks of Artificial Intelligence in the Financial Services Sector | Final |
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