WASHINGTON (TNND) — A recent report from the Government Accountability Office (GAO) has highlighted the staggering financial losses the federal government incurs annually due to fraud and improper payments. According to the GAO, the government loses between $233 billion and $521 billion each year to fraud, based on data from fiscal years 2018 through 2022. Additionally, improper payments, funds that should not have been paid or were paid in incorrect amounts, have amounted to approximately $2.8 trillion since 2003.
The report identifies that in fiscal year 2024 alone, $162 billion in improper payments were reported across 68 federal programs. Notably, 75% of these losses stemmed from just five program areas, including Medicare, Medicaid, SNAP benefits, Earned Income Tax Credits, and the Restaurant Revitalization Fund.
Medicare alone accounted for 34% of the improper payments.
While the GAO acknowledges the potential of artificial intelligence (AI) to assist in addressing these issues, it emphasizes that AI is not a standalone solution. The report stresses the necessity of having “solid, reliable data and a human in the loop to ensure data reliability and appropriate application of the technology.” Without these measures, AI could potentially exacerbate errors and poor decisions.
The GAO also recommends some straightforward measures that do not involve AI, such as urging Congress to make permanent a requirement for the Social Security Administration to share full death data with the Treasury’s “Do Not Pay” system to prevent payments to deceased individuals.
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