Artificial Intelligence is being used to falsify photos and other documents submitted for fraudulent car insurance claims, an investigation by Allianz finds.
The growth in public use of AI has resulted in easy access to tools capable of creating fake images, including vehicles. The investigation discovered that fraudulent claims in the UK have increased by 300% in the last year, with motorists using AI to create the illusion of damaged vehicles in order to make a claim.
One reported incident also involved a driver locating total loss vehicles and using artificial intelligence to implant a number plate onto the vehicle, to then make a claim.
Insurer Zurich has also seen similar trends, as reported in the Telegraph. Not only is there an uptick in the number of doctored pictures, but increasingly, fabricated repair reports and invoices are arriving alongside these images, which in turn creates a “perfect chain of evidence”.
The increase of false claims has been partly responsible for motor insurance costs rising to record levels, with the average price paid in the UK being 33% higher in the first quarter of this year than the same period in 2023.
As a technology-led business, AX is constantly developing existing processes and establishing new methods for combatting fraud, meaning claims are handled with increasing efficiency and care to minimise criminal activity.
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