Microsoft and Conduent are teaming up to deploy a generative AI fraud-detection system, first piloted last year, to monitor open-loop payment card programs for suspicious activity.
In a new press release, Conduent says the aim is to protect a payments pipeline of about $85 billion annually that the firm routes for government benefit disbursements, starting with open-loop payment card programs before scaling the pilot into other benefit-program areas.
Since open-loop cards act like credit or debit cards and can be used anywhere, it’s tougher to spot what counts as normal spending versus fraud. They’re also more vulnerable to skimming, identity theft, and account takeovers.
Conduent says the AI allows a small specialist team to surveil tens of thousands of accounts for identity theft, account takeover, and other anomalies with significantly better accuracy than before.
The firm also says it plans to extend similar AI methods to Medicaid and closed-loop EBT cards (such as SNAP benefits) to help ensure benefits are used only at approved retailers.
Says Anna Sever, president, government solutions at Conduent,
“As states adapt to evolving budget constraints and eligibility requirements, AI can empower agencies to reduce fraud and improper payments while improving service delivery. With decades of experience supporting critical government programs, Conduent is deepening its investment in AI to expand these gains across multiple programs.”
With operations across 37 states, Conduent says it will deepen its AI investments to cover more programs and improve beneficiary experience.
Conduent Incorporated (CNDT) is a business services provider that processes government payments, healthcare claims, and customer service operations. The company employs about 56,000 people worldwide.
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