AI APPS DISTORTING DAMAGE IMAGES SAY ALLIANZ
Allianz has noted a 300% increase in cases where apps were used to distort real-life images, videos and documents, calling it the latest big scam to hit the insurance industry.
The insurer said personal lines business has reported a 29% increase in fraud prevention in 2023 compared to the previous year.
This spans across all types of insurance fraud from motor claims, home claims and application fraud, and the notable rise of ghost brokers and their tactics to lure innocent victims into a fake insurance policy.
In one case an individual had a picture of his van posted on his social media page as part of his business, and had a claim pursued in his name for an accident that never took place.
LV received images of his vehicle from the fraudsters, showing the front bumper had been cracked in an alleged accident, along with a false repair invoice totalling over £1000. Noticing concerns with the claim, LV’s fraud team investigated the case, identifying the image was identical to the one found on social media but with photo editing.
However, “It is not just photo editing that poses a problem for the insurance industry, but also other emerging technologies, including AI and the rise of deep fakes. The rapidly changing nature of these fraudulent activities pose big risks to UK consumers,” said Allianz.
Allianz also reported a rise in scooter crashes for cash fraud.
