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AI Tool Helps UK Government Recover Nearly £500 Million Lost to Fraud

A new artificial intelligence tool has helped the UK government recover almost £500 million in the past year, according to officials. More than a third of the recovered money relates to fraudulent activity during the Covid-19 pandemic, with additional funds recouped from unlawful council tax claims and illegal subletting of social housing.

The Cabinet Office announced that the AI tool, called the Fraud Risk Assessment Accelerator, will now be licensed to other countries, including the US, Canada, and Australia. The tool scans policies and procedures for weaknesses before they can be exploited, helping to prevent fraud before it occurs.

Of the total recovered sum, £186 million was linked to Covid-related fraud. Government minister say the recovered funds will now be used to hire nurses, teachers, and police officers. The AI tool has also blocked hundreds of thousands of potentially fraudulent Bounce Back Loan applications, which were set up to support businesses during the pandemic.

Cabinet Office minister Josh Simons said the tool uses “cutting-edge AI and data tools” to protect public funds and prevent scammers from profiting. Developed by researchers within the Cabinet Office, the system has now proved effective enough to be shared internationally.

However, civil liberties groups have expressed concern over the government’s use of AI. Previous AI systems, such as those used to detect welfare fraud, were found to show bias related to age, disability, marital status, and nationality. Amnesty International has also criticised the government for the unchecked use of AI and technology.

Despite these concerns, the UK government says the new tool represents the largest sum ever reclaimed by its anti-fraud teams in a single year and sets a precedent for using AI to protect public money worldwide.

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