Authors: HERBERT REMIDEZ

Abstract

This study examines the emerging risk posed by independent financial researchers using AI to detect fraud on behalf of the US government to Indian and other international firms operating in the United States of America. It analyzes data from court records, press releases, and media reports, and describes the tools, techniques, and outcomes of these independent financial research firms. Unlike other countries, the US has laws that allow private citizens from any country to receive substantial cash rewards for reporting fraud perpetrated by companies conducting business in the US, even when the fraud occurs outside the US. These laws do not require that persons submitting the reports have worked for the company or have insider knowledge. These independent researchers combine programs powered by artificial intelligence with public and private datasets to detect and report suspected fraud to the US government.

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