UK government AI tool recovers £500m lost to fraud

The Fraud Risk Assessment Accelerator uses AI to detect the UK’s systemic weaknesses and prevent fraud, marking a turning point in the use of technology in governance.

A Cabinet Office AI tool has helped recover £500 million in fraud, with ministers planning an international rollout despite concerns over fairness and civil liberties.

A new AI system developed by the UK Cabinet Office has helped reclaim nearly £500m in fraudulent payments, marking the government’s most significant recovery of public funds in a single year.

The Fraud Risk Assessment Accelerator analyses data across government departments to identify weaknesses and prevent scams before they occur.

It uncovered unlawful council tax claims, social housing subletting, and pandemic-related fraud, including £186m linked to Covid support schemes. Ministers stated the savings would be redirected to fund nurses, teachers, and police officers.

Officials confirmed the tool will be licensed internationally, with the US, Canada, Australia, and New Zealand among the first partners expected to adopt it.

The UK announced the initiative at an anti-fraud summit with these countries, describing it as a step toward global cooperation in securing public finances through AI.

However, civil liberties groups have raised concerns about bias and oversight. Previous government AI systems used to detect welfare fraud were found to produce disparities based on age, disability, and nationality.

Campaigners warned that the expanded use of AI in fraud detection risks embedding unfair outcomes if left unchecked.

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