Imagine you received a phone call with an unknown number. They share some policies with you & ask for payment. What do you think? Of course, before payment, you will find their site and all, but if their presence online is also fake, then what will be your next step? In the ever-developing landscape of cybercrime, where reality and duplicity dance on a digital bind, a new player has taken center stage- Deepfake. Let’s read the full article A Battle between Duplicity and Reality—Deepfake in Insurance Fraud.
What is a deepfake?
Have you seen a recent incident with Bollywood actor Ranveer Singh on a deepfake image where someone used their image for the Lok Sabha election 2024 promotion while they mentioned that Ranveer Singh supported the BJP, another deepfake of Amir Khan? Even when the South movie Pushpa was released, the main lead actress, Rasmika, was faced with a deepfake incident.
It’s not in domestic incidents that we found some internationally famous personalities in a deepfake trap, where an Italian prime minister’s Georgia Meloni deepfake video went viral. Before this incident, have you seen Barack Obama’s viral video where Obama insults Donald Trump with a word of complete dipshit? So these are the most famous incidents of deepfake, where AI tools allow anyone to make a fake identity with their voice, face, & all.
Deepfake in Insurance Fraud?
Deepfakes have emerged as a powerful tool for those fraudsters seeking to exploit insurance carriers for financial gain. As per AI tools, fraudsters can forge accidents and injuries, generating convincing visual and audio simulations of events that never arise. They might fabricate deepfake videos or workplace fake accidents, complete with fabricated injuries and fake eyewitness accounts. AI-powered software assists in seamlessly altering digital evidence, such as photos complete with fake metadata, to submit fraudulent claims for alleged damage to vehicles, homes, or other property.
Recent Report on Deepfake Insurance Fraud
Deepfake-Insurance-Fraud
According to the Coalition Against Insurance Fraud, insurance fraud costs consumers and insurers over $308.6 billion annually. The digitalization of the insurance process, particularly the filling of insurance claims remotely, coupled with the increased use and acceptance of generative AI in many areas, will only increase the opportunities for deepfakes in insurance fraud going forward. This is because fraudsters can leverage AI to create highly convincing deepfakes, such as fabricated videos of accidents or injuries, to support their false claims.
Deepfake fraud cases
Case 1:
As per the report in the South China Morning Post, a deepfake video robbed a company of over $25.6 million, where the imposter portrayed himself as the chief financial officer of the company. The imposter ordered a money transfer during a conference call. The employees were fooled into believing that the person on the conference call was real, whereas in reality, he created an avatar of the chief financial officer and others in the company.
Case 2:
This is the first deepfake in India where an ex-Coal India executive loses Rs 40,000 in a deepfake scam that exploits his willingness to help a friend in need. The scam included an unknown person imitating the executive’s friend via a video call and requesting emergency funds for an expected hospitalization.
How can we recover or avoid deepfake insurance fraud?
As per the deepfake analysis, the ongoing evolution of deepfake technology and its integration into insurance fraud necessitate continual adaptation and innovation in defense strategies. Here are some points to avoid deepfakes in insurance fraud.
- Behavioral analysis, multifactor analysis, and the integration of various detection tools on a unified platform can enhance the industry’s resilience against evolving deepfake techniques.
- As technology becomes more pervasive, staying one step ahead of fraudsters demands a proactive and comprehensive approach to cyber security.
- To secure their defenses against the increasing threat of fraud permitted by deepfake technologies, organizations can take several key steps. These include comprehensively grasping potential risks, implementing advanced verification methods, and staying abreast of evolving deepfake tactics.
By doing so, they can safeguard themselves and their clients from the rising menace of finance associated with deepfake technology.
