Artificial intelligence (AI) is being used to detect cancer cells, write essays… and commit insurance fraud.
Fraudsters have been caught using AI technology to edit photos for fraudulent auto insurance claims, often adding fake damage from an accident that never happened.
In an investigation conducted by Allianz in the UK, it was discovered that such cases have increased by up to 300% across the insurance industry in the past year.
Innovative AI features on photo editing apps have been around for a while, but using them to edit and submit edited images and videos as evidence for claims Insurance fraud has become much more common in recent years.
Dubbed “shallow fakes,” these images are sometimes (but not always) quite convincing and are examples of scammers adapting their methods in an attempt to profit from public new technology.
In one such case, an individual who posted a picture of his work truck on social media claimed in his name an accident that never happened.
Liverpool Victoria (LV=), an insurance company owned by Allianz, received images of the truck with a cracked bumper, believed to have been caused by an accident, as well as a fake repair invoice worth over £1000 (about AU$1900) .
The company’s fraud team was concerned, and when they investigated the incident, they discovered the image was identical to one found on social media, albeit with additional fake damage.
Allianz said that in response to the increase in fraudulent claims, it has partnered with voice analytics tool Clearspeed to detect more fraud and speed up the processing of genuine claims.
The partnership comes after Allianz’s personal lines business in the UK reported a 29% increase in fraud prevention in 2023 compared to the previous year.
