Allianz, an insurance giant, has taken a stand against fraudsters who are utilizing artificial intelligence (AI) to manipulate images and fabricate insurance claims. While AI is being employed for various beneficial purposes like cancer detection and content creation, it’s also being misused for insurance fraud.
Fraudulent activities involving AI technology have surged, with scammers manipulating images to create fake evidence for car insurance claims, often depicting non-existent accidents.
According to an investigation by Allianz in the UK, such cases have risen by a staggering 300 percent across the insurance sector in the past year. Although photo editing apps with generative AI features have been available for some time, their misuse for insurance fraud has become more widespread recently.
These manipulated images, known as “shallowfakes,” can sometimes appear convincing, representing scammers’ adaptation to advancements in technology. In one instance, a fraudulent claim was filed for damage to a work van, supported by images allegedly showing a cracked bumper from an accident. Liverpool Victoria, an insurer under Allianz, received these images along with a fabricated repair bill.
Upon investigation, it was discovered that the images were merely edited versions of those originally posted on social media, with the damage added artificially.
To combat the rise in fraudulent claims, Allianz has teamed up with Clearspeed, a voice analytics tool, to enhance fraud detection and streamline genuine claim processing. This collaboration follows Allianz’s personal lines business in the UK, reporting a significant 29 percent increase in fraud prevention efforts in 2023 compared to the previous year.
