If government agencies aren’t using AI to combat fraud, they may unintentionally be giving fraudsters the upper hand.
Today’s fraudsters are more sophisticated, leveraging AI to scam citizens and exploit government relief programs with unprecedented speed and scale. A 2024 report from Thomson Reuters highlights that 19% of respondents identify AI as a key driver in the expected increase in fraud over the next two years.
Agencies like the U.S. Department of the Treasury are responding. In fiscal year 2023, the Treasury’s Office of Payment Integrity used AI to recover over $375 million from fraudulent checks.
Additionally, the Department of Justice’s Justice AI initiative represents a significant investment in using AI to enhance law enforcement capabilities while ensuring that proper safeguards are in place to protect civil rights and prevent the misuse of technology. As Deputy Attorney General Lisa Monaco highlighted, “AI is the sharpest blade yet—it can enhance law enforcement capabilities, but also carries risks.”
To effectively combat fraud using AI, government agencies must focus on developing a well-rounded approach that includes selection of right AI tools, training, policy updates, and advanced processes.
Here’s how you can strategically go about leveraging AI in your investigations:
1. Do a Careful Evaluation of AI-Powered Fraud Investigation Tools
AI integration in fraud detection is emerging: survey data suggests that 18% of anti-fraud professionals currently utilize AI/ML tools, and a significant 32% plan to adopt these technologies within the next two years.
However, making the most of technology requires a careful evaluation of AI-powered fraud investigation tools. Here are some capabilities to look for:
- Data Security: Choose an on-premise tool that stores data securely within your agency’s environment, ensuring full control and compliance with security protocols.
- Automated Data Capture: Look for a tool that automatically extracts data from both structured and unstructured documents, supporting a wide range of file types without manual input.
- Data Accuracy: Ensure the tool normalizes names, corrects inconsistencies, and checks for accuracy so you can trust the data is clean and reliable.
- Source Verification: Select a tool that links every piece of data back to its original document, giving you confidence in the accuracy of the AI’s output by showing exactly where the data came from.
- Ease of Use: Opt for a chat-based interface where you can analyze data using simple Q&A prompts like, “Show high-value transactions (>5,000 USD) for elderly abuse.” Make sure the tool lets you customize and save your prompts for future use.
- Advanced Analytics: Choose features like entity link analysis and transaction categorization, allowing you to trace funds, spot anomalies, and uncover hidden patterns across complex fraud cases.
- Visualization and Reporting: Opt for tools that export data to formats like Excel and Power BI, enabling investigators to create compelling visual reports.
- Ethics and Bias Mitigation: The AI should have governance frameworks to ensure transparency, minimize biases, and align with regulatory standards.
- Audit Trail: Ensure the tool tracks every change made during the investigation, maintaining a log of all edits for transparency and accountability within the case.
Ultimately, AI helps agencies work faster and smarter, but it’s only as effective as the people using it. Ensuring your team has the skills to maximize AI’s potential is key.
2. Bridge the AI Skills Gap to Ensure the Right Use of AI-Powered Tools
To fully leverage AI in investigations, investigators must develop strong data analysis and interpretation skills. They need to accurately interpret AI outputs to distinguish genuine fraudulent activity from false positives.
Investigators must also continuously and critically evaluate AI models to ensure the findings are reliable and AI is free of any bias. For example, sampling bias can occur if an AI model is trained on a dataset that over-represents certain demographics, leading to skewed results.
At our recent AI training summit, nearly 74% of public investigators reported having no prior training in AI skills related to financial investigations, revealing a significant skills gap. On a positive note, a promising 79% expressed eagerness to develop their AI skills, demonstrating their readiness to embrace this technology with the right education and support.
Here are some steps that agencies can take:
- Implement Structured Training Programs: Develop training modules that cover AI tool functionality and foundational technology, ensuring investigators can leverage AI effectively.
- Encourage Continuous Learning: Foster ongoing education by providing access to workshops, webinars, and online courses, helping investigators stay updated on AI advancements.
- Facilitate Hands-On Experience: Offer practical projects and simulations for investigators to work directly with AI tools, building confidence and dispelling fears about job displacement.
- Promote Collaboration: Encourage teamwork between investigators and IT or AI specialists to enhance understanding and tailor AI applications to specific fraud investigation needs.
- Measure Progress: Establish metrics to assess skill development over time, ensuring regular evaluations identify areas for improvement and maintain training effectiveness.
Recognizing the need for a skilled workforce, Vice President Harris has called for appointing chief AI officers in federal agencies and initiated the National AI Talent Surge. This effort underscores the government’s commitment to equipping investigation teams with professionals who can effectively leverage AI to transform the public sector.
To learn more about the use of AI for fraud investigation, download this ebook now!
Once an ideal team with the necessary skills is built, the next critical aspect is to ensure the transparent and responsible use of AI in investigation processes.
3. Adhere to AI Guidelines for Fraud Investigation Processes
To stay ahead in fraud investigations, agencies must adopt AI responsibly, ensuring that these systems protect privacy, reduce bias, and maintain public trust. A critical resource in this effort is the GovAI Coalition, which comprises officials from over 200 state and local governments. This coalition, formed by technology officials at the City of San Jose, collaborates to provide guidelines and share best practices that help agencies implement AI ethically and effectively. By leveraging these resources, agencies can promote responsible AI use across the public sector.
However, adopting AI responsibly goes beyond just following guidelines; it requires ongoing vigilance. Conducting regular audits of AI tools is essential. These audits ensure that AI systems perform as intended, allowing agencies to identify and rectify any flaws or biases before they can negatively impact investigations. This proactive approach not only enhances the reliability of AI applications but also reinforces the integrity of the investigative process.
While all these efforts are non-negotiable, what if we have a solution designed specifically with these principles in mind? We introduce ScanWriter AI: a solution that embodies comprehensive AI capabilities, requires minimal training, and adheres strictly to all ethical and legal regulations.
Read on to discover how this one platform can meet all your needs.
ScanWriter AI: A New-Age AI Tool for Meeting Public Sector Investigator’s Need
As Benjamin Chou, president of Personable Inc., aptly puts it, ‘Artificial intelligence is here, and federal and state/local government agencies are ready and eager to implement it to improve efficiency across numerous initiatives.’
This readiness highlights a broader trend: government agencies are not just adopting AI; they are actively seeking solutions that enhance operational efficiency and adhere to the highest ethical standards.
This is where ScanWriter AI becomes instrumental. Developed with a deep understanding of the unique challenges faced by fraud investigators at government agencies in the USA—such as managing overwhelming volumes of data, the need for rapid and precise analysis, and maintaining strict reliability and ethical integrity—ScanWriter AI is a modern solution that stands out.
As a trusted name among public investigators, ScanWriter has always been synonymous with top-notch performance and reliability.
Now, stepping into the AI frontier, ScanWriter is set to revolutionize the field of fraud investigation further. This advanced tool enhances accuracy, integrity, efficiency, and security, empowering you to not just keep pace with—but lead—the fight against fraud.
Are you excited to see how ScanWriter AI can transform your investigations? Contact us today for a free demo and experience the future of fraud investigation firsthand!