A theme is developing in business that AI contributes business value by eliminating one of the moost pervasive data issues, one which Banks reallly suffer but all businesses do a large extent: that issue is co-relating customer data from disparate sources and producing a novel profile which can be used to create value through customer activity, inadvertent or deliberate, by identifying items such as missed opportunities, fraudulent activity or customer ignorance which resulted in losses or missed new business.

The UK givernment has develpoed an AI tool to create a picture of citizen activity related to government payments, much of it associated with COVID 19 lock down government benefits but also other government subsidy schemes..

I reseaarched the tool source, and it appears to be homegrown, which I find a little surprising and note the tool is to be licensed to “Licensing to Five Eyes partners bbc+2” – this could (my presumption) suggest engagement of GCHQ on a secret basis to mitigate the usual outcry of activists. I think this is a good thing for what it is worth and privacy rights cannot overcome illegal, erroneous or inadvertant activity that results in all citizens footing the bill..

Perplexity.ai research

The UK government recently used an artificial intelligence tool known as the Fraud Risk Assessment Accelerator, developed by researchers within the Cabinet Office, to recover nearly £500 million lost to fraud over the past year. This tool was not provided by Endor or any external vendor; it is a proprietary government-developed system. The Fraud Risk Assessment Accelerator works by analyzing new policies and procedures for vulnerabilities prior to exploitation, enabling government agencies to identify and prevent fraud in a proactive manner.bbc+5

Tool Origins and Function

The Fraud Risk Assessment Accelerator was built and tested by the UK Cabinet Office specifically for public sector use.dig+2

Its principal function is to cross-match government data across departments, assess policy weakness, and prevent fraudulent claims—such as Covid-era Bounce Back Loans, illicit council tax rebates, and illegal social housing subletting—before payments are made.bbc+4

Ministers have indicated the tool will now be licensed internationally, with countries like the US, Australia, Canada, and New Zealand expected to adopt it.sumsub+2

Summary Table

Tool Name Developer Purpose International Licensing
Fraud Risk Assessment Accelerator UK Cabinet Office Detect/prevent government fraud Licensing to Five Eyes partners bbc+2

Tool Name	Developer	Purpose	International Licensing
Fraud Risk Assessment Accelerator	UK Cabinet Office	Detect/prevent government fraud	Licensing to Five Eyes partners bbc+2

BBC reporting follows:

Source: https://www.bbc.com/news/articles/cpd92gpld0go

AI tool helped recover £500m lost to fraud, government says

Jack FenwickPolitical correspondent

PA Media A photo of British £5, £10 and £20 notes

A new artificial intelligence tool designed to crack down on fraud has helped the UK government recover almost £500m over the last year, the BBC can reveal.

More than a third of the money clawed back related to fraudulent activity during the Covid-19 pandemic, with other cash being recouped from unlawful council tax claims and illegal subletting of social housing.

The government will announce later that a new AI tool which has helped to identify the fraud will now be licensed to other countries, including the US and Australia.

Civil liberties campaigners have previously criticised the Labour government for its use of AI in trying to counter fraud.

The Cabinet Office says the £480m recovered in the 12 months from April 2024 is the largest sum ever reclaimed by government anti-fraud teams in a single year.

The savings have been made by cross-referencing information held by different government departments, as well as using a new AI tool.

Ministers say the savings will now be used to recruit nurses, teachers and police officers.

Of the total sum recovered, £186m was related to Covid fraud.

Ministers have long vowed to claw back some of the money lost during the pandemic, but the £186m recouped is a fraction of the amount Labour has previously said was missing.

Before last year’s general election, the now-Chancellor Rachel Reeves claimed more than £7bn of public money was lost to fraud during the pandemic.

These savings include the blocking of hundreds of thousands of companies with potentially fraudulent Bounce Back Loans from dissolving.

Bounce Back Loans were loans of up to £50,000 set up by the government during the pandemic to support businesses.

But the scheme has been criticised for not being diligent enough and effectively inviting fraud, as companies that dissolve before paying back the money often then do not need to repay anything.

The Cabinet Office says one case it found involved a woman who invented a company and then sent the loan money to Poland.

Anti-fraud summit

Cabinet Office minister Josh Simons will announce the savings at an anti-fraud summit held jointly by the UK, the US, Canada and Australia on Wednesday.

He said “cutting-edge AI and data tools” would ensure the government can protect public funds and not “line the pockets of scammers and swindlers”.

The new AI tool, called the Fraud Risk Assessment Accelerator, was developed by researchers in the Cabinet Office and will now be rolled out across other government departments.

The Cabinet Office said the tool “scans new policies and procedures for weaknesses before they can be exploited” and claims it could make policies “fraud-proof” before they are implemented.

It was developed because of concern within Whitehall about the level of fraud seen during the pandemic.

Simons will announce that the UK government will now license the tool for international use, and it is expected that the US, Canada, Australia and New Zealand will all adopt it in some way.

But the move could cause concern among campaign groups already unhappy with the government’s use of AI.

Last year, an AI tool used to crack down on welfare fraud was found to show bias according to people’s age, disability, marital status and nationality.

Documents released to the Guardian under Freedom of Information Laws admitted the tool used by the Department for Work and Pensions showed a “statistically significant outcome disparity” in a “fairness analysis”.

A report by Amnesty International released earlier this year criticised the government’s “unchecked use of tech and AI systems”.

Sources:

The tool represents a major advance in government AI for fraud risk mitigation and is distinct from external solutions such as Endor.bbc+4

Bankwatch

PRODUCTIVITY Progress in era of Artificial Intelligence

AI helped recover £500m lost to fraud -UK government

Tool Origins and Function

Summary Table

AI tool helped recover £500m lost to fraud, government says

Anti-fraud summit

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