The Pubic Sector Fraud Authority (PSFA), which was set up in 2022 to help tackle fraud in the public sector, has partnered with Quantexa to use new data and cutting edge technokogy, including Artificial Intelligence (AI).

Quantexa technology will help find and prevent more fraud across the public sector, and the £4 million contract is part of a wider investment across the government to root out fraud and use modern tools and techniques to stop it before it happens.

“Fraud against the public purse is unacceptable and we’re stepping up the fight against those who wish to profit off the backs of taxpayers,”Baroness Neville-Rolfe, the Cabinet Officer Minister said.

According to data from September 2022, public sector fraud and error loss is costing the public at least £33bn a year.

“Through the use of cutting edge technology, the Public Sector Fraud Authority will use data and AI to help us in the fight against fraudsters.”

The Cabinet Office previously worked with Quantexa to investigate potential fraud withing the government’s Bounce Back Loan Scheme, which involved more than 100 million data items to be processed and analysed.

PSFA CEO Mark Cheeseman said: “We know that fraudsters are a capable and committed adversary and the way they commit fraud is diverse and evolving.

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“As criminals develop more sophisticated tools, we too must innovate and modernise our approach to prevent fraud.

“By bringing together expertise and tools from the public sector and private sector we will raise our ambition and challenge ourselves to increase our impact on this often unseen and underestimated crime.”

The PSFA, backed by £25 million of funding, will be the centre of the government’s Counder Fraud Function. It has been tasked with modernising the government’s counter fraud response, working with departments and public bodies to improve their fraud defences and using leading practice and modern techniques to protect taxpayer money.

It has set a first-year target of £180 million of recognised fraud benefits, which it is on course to hit.

The Government Counter Fraud Function brings together the c. 13,000 people who work in departments and public bodies to fight fraud, including those working to understand and mitigate fraud risk within their organisations and those who work in the public sector to fight economic crime.

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