Results from early tests show that a new AI fraud prevention tool could slash the time to identify fraud risks by 80 per cent.
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The United Kingdom says it has saved a record sum in a major fraud crackdown, thanks in part to a “high-tech push” that will now include artificial intelligence (AI).
The UK’s anti-fraud teams reclaimed about £480 million (€556 million) in the year ending in April 2025, compared to £373 million (€432 million) in the previous period, the government said.
The fraud detection teams cross-referenced data that was held by different government departments to claw back the money, most of which was public funding.
“We’re using cutting-edge AI and data tools to stay one step ahead of fraudsters, making sure public funds are protected and used to deliver public services for those who need them most – not line the pockets of scammers and swindlers,” Cabinet Office Minister Josh Simons said in a statement.
The reclaimed fraud payments involved government grants and loans during the COVID-19 pandemic that amounted to about £186 million (€215 million) – more than one-third of the total money saved – as well as more than £68 million (€79 million) in wrongful pension payments and £36 million (€42 million) in unlawful council tax claims.
The “high-tech push” brought in about £110 million (€127 million) more than the previous year, the government said.
The government said it is also launching a new AI-driven fraud prevention tool, called the Fraud Risk Assessment Accelerator, to scan “new policies and procedures for weaknesses before they can be exploited”.
Results from early tests show the AI tool could cut the time needed to identify fraud risks by 80 per cent and help prevent millions in potential losses, the government said.
The fraud prevention tool has been offered to the United States, Canada, Australia, and New Zealand for their consideration, the UK government said.
Other countries have also taken steps to automate their fraud detection. Sweden’s employment agency, for example, has been tracking the online locations of thousands of citizens receiving unemployment benefits in an effort to crack down on welfare fraud.
In the Netherlands, meanwhile, a similar AI system to track people’s locations online has raised surveillance concerns.
The Dutch state benefits agency was forced to scrap the AI system after government lawyers warned it breached privacy laws.
