Part 3/8:
The incorporation of AI into the financial crime detection process has been gradual, beginning in late 2022. This initiative was relatively unnoticed at first, drawing strategies from banks and credit card companies that had already leveraged AI to identify irregularities like stolen cards or bogus transactions.
The urgency intensified during the COVID-19 pandemic, during which the federal government rapidly distributed emergency financial aid. Unfortunately, this rush created opportunities for criminals, leading to a notable rise in fraud. Thus, the Treasury decided to apply AI tools to guard taxpayer money effectively.