AI tool helps claw back almost £500million in Labour's 'toughest ever' fraud crackdown

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GB News

Joe Sledge

By Joe Sledge


Published: 24/09/2025

- 08:21

AI systems help target fraudsters and recover public money, according to the Government

Britain's anti-fraud teams have achieved their most successful year on record, retrieving nearly half a billion pounds through sophisticated artificial intelligence (AI) technology.

The £480million recovery between April 2024 and March 2025 is an unprecedented figure in combating financial crime.


A substantial portion of these funds, totalling £186million, stemmed from fraudulent activities during the coronavirus crisis.

The Government targeted dishonest council tax applications and unauthorised subletting of social accommodation alongside pandemic-related schemes.

This announcement arrives as ministers prepare to share their innovative fraud detection system with international partners.

The technology, known as the Fraud Risk Assessment Accelerator, could soon extend its reach beyond British shores.

Westminster hopes to license the system to allied nations, with the United States, Australia, Canada and New Zealand expected to implement the tool.

The Government will hope this demonstrates Britain's leadership in technological innovation and financial security.

Fraudster and money

This announcement arrives as ministers prepare to share their innovative fraud detection system with international partners

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The system is designed to analyse proposed policies and procedures to identify potential vulnerabilities before fraudsters can exploit them.

Cabinet Office minister Josh Simons will formally unveil the arrangements at Wednesday's international anti-fraud conference, hosted jointly by the Five Eyes intelligence alliance.

He said: "Cutting-edge AI and data tools will safeguard taxpayer money from falling into the hands of scammers and swindlers."

The pandemic recovery efforts exposed cases of corporate deception, including firms attempting to dissolve before repaying Government-backed Bounce Back Loans.

These emergency loans, capped at £50,000 per business, became targets for sophisticated fraud schemes during the crisis.

Cabinet Office sign

Cabinet Office minister Josh Simons will formally unveil the arrangements at Wednesday's international anti-fraud conference

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PA

The Cabinet Office says one case involved a fraudster who fabricated an entire company to secure funding, subsequently transferring the stolen money to Poland.

Such schemes exploited the rapid rollout of pandemic support measures, which critics argued lacked adequate safeguards against exploitation.

Whilst the £186million recovery represents progress, it remains a modest fraction of the estimated £7billion that Chancellor Rachel Reeves identified as lost to pandemic fraud.

The Government says it has successfully prevented hundreds of thousands of potentially fraudulent companies from dissolving to escape loan obligations.

The international anti-fraud summit, convened by Britain alongside its intelligence partners, could mark a pivotal moment in global financial security cooperation.

The gathering brings together representatives from the Five Eyes alliance to address the escalating threat of sophisticated fraud schemes.

Cabinet Office researchers developed the AI system in response to widespread concerns about vulnerability exploitation during the pandemic.

The technology promises to revolutionise how governments protect public resources by identifying weaknesses in proposed policies before implementation.

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Five Eyes Alliance

The Five Eyes Alliance includes United Kingdom, the United States of America, Canada, Australia and New Zealand

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However, the advancement has sparked apprehension amongst civil liberties advocates who question the Government's reliance on artificial intelligence.

Amnesty International has voiced strong criticism regarding what it described as the Government's "unchecked use of tech and AI systems".

These concerns highlight the balance between protecting public funds and safeguarding citizens' rights as Westminster accelerates its adoption of artificial intelligence across departments.

Further measures are expected as the Government expands its use of artificial intelligence in public services.

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