Verifiable claims help people and organizations prove information they share is true. They make it easy to check credentials quickly and safely. By using verifiable claims, schools, banks, and businesses build trust, reduce errors, and keep data secure.

In 2023, U.S. government agencies lost more than $200 billion to improper payments, according to reports from the Office of Management and Budget (OMB) and the Government Accountability Office (GAO). That’s money lost to fraud, errors, and weak verification processes.

Improper payments don’t just waste taxpayer dollars. They also create compliance risks and damage public trust. When citizens see funds misused, they question the government’s ability to protect resources and deliver services fairly.

The good news? There’s a way forward. Verifiable claims offer a secure way to confirm identities, check eligibility, and stop false claims before money goes out the door.

In this blog, you’ll see how verifiable claims can cut fraud, reduce improper payments, improve compliance, and modernize payment systems.

How Big is the Improper Payments Problem in Government?

Improper payments are a massive drain on government budgets. They happen when agencies pay the wrong amount, pay the wrong person, or approve a claim that should never have been paid in the first place.

In the U.S. alone, improper payments added up to over $200 billion in 2023, according to government reports. That’s taxpayer money lost to fraud, mistakes, and weak verification systems.

Here are some common examples:

• Healthcare programs like Medicare and Medicaid, where fraudulent billing or ineligible claims slip through.
• Unemployment insurance, where duplicate or false claims are approved.
• Pandemic relief funds, where rushed processes allowed large-scale fraud.

The impact goes beyond just money. Improper payments also weaken public trust. Citizens expect their government to protect funds and deliver services fairly. When fraud or errors make headlines, confidence in agencies drops fast.

That’s why solving this problem matters. Reducing improper payments means saving billions, protecting taxpayer money, and restoring accountability.

What Are Verifiable Claims and How Do They Reduce Improper Payments?

Verifiable claims are tamper-proof, digital credentials that prove if a person or organization is eligible for a payment. They confirm identity, eligibility, or the authenticity of a claim in a secure way. Unlike paper documents that can be faked or altered, verifiable claims use cryptographic technology. That means agencies can instantly trust the information without relying on slow manual checks.

How they work in the claims verification process

Think about unemployment insurance. Today, many states still process claims with outdated systems that leave room for fraud. With verifiable claims, an applicant’s identity and work history can be confirmed digitally before benefits are released.

Or take healthcare reimbursements. Instead of approving claims based only on documents, agencies can verify medical credentials and eligibility instantly. This reduces the chance of billing fraud or payments going to ineligible providers.

Preventing payment fraud with verified claims solutions

The biggest benefit is fraud prevention. Verifiable claims stop duplicate claims, identity theft, and false submissions before money leaves government accounts. By using secure digital credentials, agencies cut down on errors and fraud while speeding up the entire process. The result: fewer improper payments and stronger public trust.

What Fraud Prevention Benefits Do Verifiable Claims Deliver?

Fraud detection technology at scale

Fraud can happen in thousands of ways, from duplicate claims to identity theft. Manual checks can’t keep up with the volume. Verifiable claims change this by adding automation to fraud detection. Agencies can spot anomalies in real time, stopping false or suspicious claims before payments go out. This helps you stay ahead of fraud instead of reacting after money is lost.

Secure claims processing and compliance

Government programs must follow strict rules like OMB A-123 and NIST guidelines. Verifiable claims support these requirements by making every step of the process traceable and secure. Claims are validated against trusted sources, leaving no room for tampering. This not only reduces fraud but also proves compliance during audits.

Claims accuracy improvement

Accuracy matters as much as fraud prevention. Verifiable claims ensure payments go to the right person, for the right amount, at the right time. This reduces errors, cuts down on disputes, and saves agencies the cost of fixing mistakes. The result is smoother claims management, lower waste, and stronger confidence in government systems.

How Much Could Governments Save by Using Verified Claims Solutions?

Scale of potential savings

The scale of improper payments is staggering. In 2023, government programs lost more than $200 billion, according to OMB reports. Even if agencies reduced that number by just 10%, the savings would be in the tens of billions of dollars. That’s money that could be redirected to public services, infrastructure, or debt reduction instead of being wasted on fraud and errors.

Cost vs. ROI

Some agencies hesitate because technology investments feel expensive upfront. But the return on investment (ROI) is clear. Every dollar spent on claims verification solutions prevents multiple dollars from being lost to fraud. Beyond direct savings, agencies also benefit from faster processing, lower audit costs, and improved compliance.

Case scenario

Take Medicaid as an example. Improper billing and fraudulent claims cost billions each year. By applying verifiable claims to confirm provider credentials and patient eligibility, agencies can stop false submissions before payment. The same applies to unemployment insurance, where duplicate or fake claims can be flagged instantly. These measurable reductions prove that secure claims verification is not just cost-effective, it’s essential.

What Technology Powers Secure Payment Systems and Fraud Reduction?

Automation and AI in fraud detection

Manual audits can’t catch every suspicious claim. Verifiable claims use automation and AI to spot anomalies in real time. This means you can stop fraud before payments are issued, rather than chasing errors afterward.

Blockchain and digital fraud solutions

Blockchain adds another layer of security. Every claim is tamper-proof and traceable, making it nearly impossible to alter data or submit false claims. Agencies can confidently approve payments knowing the information is verified and secure.

Streamlining claims verification

Technology also makes processes faster. By integrating verifiable claims into your existing systems, agencies reduce manual checks, speed up approvals, and cut errors. The result is a more efficient, accurate, and secure claims workflow that protects taxpayer money and builds public trust.

How Should Agencies Implement Fraud Risk Management with Verifiable Claims?

Key fraud reduction strategies

Start by identifying high-risk programs and payments. Use verifiable claims to verify eligibility and identity before releasing funds. This proactive approach prevents fraud instead of reacting after mistakes happen.

Steps for adoption

1. Pilot programs – test verifiable claims in one department or benefit program.
2. Scale gradually – expand to multiple programs once processes are proven.
3. Integrate with existing systems – connect claims verification solutions to current payment and compliance platforms.

Building trust and compliance

Implementing verifiable claims improves compliance with federal standards and strengthens accountability. Citizens and auditors see that payments are accurate and secure, increasing confidence in government programs.

Wrap-up!

Improper payments cost the U.S. government billions every year, and traditional methods can’t stop all fraud or errors. Verifiable claims offer a secure, automated way to verify identities, confirm eligibility, and prevent false submissions before payments go out.

By adopting verified claims solutions, agencies can reduce improper payments, strengthen compliance, and improve efficiency. The result is not only significant cost savings but also increased public trust and accountability.

You don’t have to wait for fraud to happen. Start using verifiable claims today to protect taxpayer money, streamline claims processing, and modernize your payment systems.

Fill the inquiry form to connect with our expert team to build your verified claims solutions to take control of fraud risk and ensure every payment is accurate and secure.