Criminals beware: Government upgrades AI fraud detection tool
By Law News
In a proactive move against organised crime and sanctions evasion, the UK government has enhanced its fraud detection capabilities with the integration of UK and US sanctions data into its Single Network Analytics Platform (SNAP)
This upgrade aims to empower authorities in identifying suspicious networks, activities, and users, thus strengthening efforts to combat fraud within the public sector.
SNAP, a cutting-edge AI-powered tool developed in collaboration with Quantexa, has received a substantial boost with the inclusion of 18,000 sanctioned entities from the UK and US, 1,000 World Bank debarments, and data on 647,000 UK dormant companies. This strategic integration enhances the tool's ability to detect fraudulent claims on public funds, particularly within contracts, grants, and loans.
Minister Neville-Rolfe emphasised the government's commitment to leveraging technology to safeguard taxpayers' money and crack down on fraudulent activities. The announcement coincides with the initiation of several AI discovery projects aimed at identifying innovative methods to detect fraud, including the detection of 'phoenixing,' a practice involving the repeated registration and bankruptcy of companies to evade debts.
Furthermore, the Chancellor's decision to allocate £34 million towards expanding the Public Sector Fraud Authority underscores the government's dedication to bolstering its counter-fraud capabilities. This investment, expected to yield £100 million in savings over the next spending review, will facilitate the development of advanced counter-fraud technologies.
Baroness Neville-Rolfe outlined the Government Counter Fraud Function Strategy 2024-27, which sets forth five key objectives focusing on personnel development, effective data utilisation, prevention strategies, targeted responses against fraudsters, and cultural change across the public sector. These objectives will be supported by specific policy commitments, including the enhancement of counter-fraud data sharing frameworks and the expansion of analytics tools like SNAP.
Mark Cheeseman, Chief Executive of the Public Sector Fraud Authority, expressed optimism regarding the government's renewed focus on fraud prevention and detection. He emphasised the significance of the Chancellor's investment in employing innovative techniques to combat criminal activities effectively, thus ensuring optimal resource allocation for public services.
The integration of sanctions data into SNAP represents a pivotal step in the government's ongoing efforts to curb fraud and safeguard taxpayer funds. By harnessing the power of AI and strategic investments, authorities aim to stay one step ahead of sophisticated fraudsters, ultimately safeguarding the integrity of the public sector.