UK Government Recovers £480M in Biggest Fraud Crackdown with Help from AI
The UK government has recovered a record £480 million in the past year as part of its toughest-ever fraud crackdown, largely thanks to a new artificial intelligence tool. More than a third of the money came from uncovering pandemic-related scams, including fraudulent Bounce Back Loans. One case involved a woman who invented a fake business and funneled the loan money to Poland. Cabinet Office Minister Josh Simons said, "That money going into the hands of fraudsters is a betrayal of their hard work and the system of paying your fair share. It has to stop."
A key driver of the savings was the use of the AI-powered Fraud Risk Assessment Accelerator, developed by government researchers. The tool scans new policies for loopholes that fraudsters could exploit, aiming to make them "fraud-proof" before they’re rolled out. According to early tests, it reduces fraud detection time by 80% while maintaining human oversight. It’s now set to be deployed across all departments and licensed internationally, with countries like the US, Canada, and Australia expected to adopt it.
Beyond Covid-related fraud, the crackdown targeted unlawful council tax discounts, illegal subletting of social housing, and benefit fraud. Data-matching across departments helped flag suspicious activity, while AI improved the speed and accuracy of detection. Simons said this technology means more taxpayer money can now go to recruiting nurses, teachers, and police officers — not "line the pockets of scammers and swindlers."
However, not everyone is cheering. Civil liberties groups have raised concerns over the growing use of AI in government, especially after past tools were found to show bias based on age, disability, and nationality, and Amnesty International warned of the “unchecked use of tech and AI systems.” Still, ministers are pushing ahead, saying tech-driven efficiency is crucial to saving billions as part of the government’s wider public sector reform plan.
