A $5.7 billion AI startup wants to help cut government benefit fraud. Experts aren't so sure.
Briefly

A $5.7 billion AI startup wants to help cut government benefit fraud. Experts aren't so sure.
"Daniel Yanisse, the CEO of Checkr, told Business Insider that the company wants to help the government reduce "fraud and waste" by not only screening new employees but also verifying people's eligibility for benefits such as Medicare and Social Security."
"When asked what Checkr wants to do for the government, Yanisse said that for Medicare and other programs, "there's a lot of fraud happening and just bad actors getting the government dollars instead of the right people who need help," adding that it's very hard for the government to actually verify people's employment status and income."
"AI and safety experts, however, told Business Insider that there are legal and technical hurdles for any company to undertake the task of automating benefit and welfare systems with AI."
Checkr, a San Francisco-based identity verification startup valued at over $5.7 billion, aims to secure government contracts for verifying eligibility for benefits programs like Medicare and Social Security. CEO Daniel Yanisse stated the company wants to help reduce fraud and waste in government assistance systems, citing challenges in verifying employment status and income. Checkr currently uses AI for background checks and screens drivers for Uber and Lyft. However, AI and safety experts warn of significant legal and technical obstacles to automating welfare systems. Medicare's Fee-for-Service program reported $28.83 billion in improper payments in 2025, though not all cases involve intentional fraud.
Read at Business Insider
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