UK AI tool helps recover £480m in fraud losses, to be licensed internationally
Cabinet Office says the Fraud Risk Assessment Accelerator identified hundreds of fraud cases and will be rolled out across government departments and overseas partners, amid privacy and fairness concerns.
The UK government said a new artificial intelligence tool helped recover £480 million in fraud losses over the 12 months from April 2024, the largest sum ever reclaimed by government anti-fraud teams in a single year. More than a third of the money clawed back related to fraud during the Covid-19 pandemic, with other recoveries from unlawful council tax claims and the illegal subletting of social housing.
The tool, called the Fraud Risk Assessment Accelerator, was developed by Cabinet Office researchers and is designed to scan new policies and procedures for weaknesses before they can be exploited. Officials say the system can help make policies more fraud-resistant before they are implemented. One case cited involved a woman who created a fake company and routed loan money to Poland; the government has highlighted this as an example of how the model can flag suspicious activity in real time. Bounce Back Loans, issued during the pandemic to support small businesses, have been a particular target, and the government notes that hundreds of thousands of potentially fraudulent loans were blocked from dissolving to prevent repayment.
Cabinet Office minister Josh Simons will announce the results at an anti-fraud summit co-hosted this week by the United Kingdom, the United States, Canada, Australia and New Zealand. He said cutting-edge AI and data tools would help protect public funds and not line the pockets of scammers and swindlers. The government also said the tool will be licensed to other countries, including the United States and Australia, with the United States, Canada, Australia and New Zealand expected to adopt it in some form.
Civil liberties groups have expressed concern about the use of AI in fraud enforcement. Last year, a separate AI tool used to crack down on welfare fraud showed bias based on age, disability, marital status and nationality in a fairness analysis. Amnesty International this year criticized the government's broader use of technology without sufficient safeguards. Ministers say the new tool represents an evidence-based step toward reducing fraud and reclaiming public funds while expanding the government's operational capabilities. The anticipated international rollout aims to extend the system’s benefits beyond the UK and support allied partners in recovering public funds and deterring fraud.