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The US Department of the Treasury announced today that it has successfully prevented and recovered over $4 billion in fraud and improper payments in the 2024 fiscal year, a substantial increase from the $652.7 million recovered in the previous year. 

This achievement highlights the Department’s ongoing commitment to enhancing its fraud prevention capabilities, led by the Office of Payment Integrity (OPI) within the Bureau of the Fiscal Service.

The significant rise in prevention and recovery efforts is attributed to the Treasury’s use of cutting-edge technology and data-driven strategies. 

Expanded risk-based screening led to the prevention of $500 million in fraudulent payments, while a more focused approach to identifying high-risk transactions resulted in $2.5 billion being safeguarded. 

In addition, the use of machine learning and AI to quickly detect Treasury check fraud facilitated the recovery of $1 billion, further underscoring the Department’s technological advancements. Efficiencies in payment processing schedules helped prevent another $180 million in fraudulent activities.

Deputy Secretary of the Treasury Wally Adeyemo acknowledged the progress made, noting, “Treasury takes seriously our responsibility to serve as effective stewards of taxpayer money. Helping ensure that agencies pay the right person, in the right amount, at the right time is central to our efforts.”

The Treasury has also focused on forming new partnerships with high-risk programs and expanding the use of its payment integrity solutions. 

Notably, in May 2024, the Department launched a data-sharing initiative with the Department of Labor, giving state unemployment agencies access to Treasury’s Do Not Pay Working System through the Unemployment Insurance Integrity Data Hub.

As the federal government’s central disbursing agency, the Treasury is uniquely positioned to tackle financial fraud, leveraging data and technology to safeguard billions of taxpayer dollars annually.