Unmasking Insurance Fraud: AI as a Double-Edged Sword

Case Background

In New Jersey, insurance fraud ranks as the second-largest white-collar non-violent crime, trailing only tax evasion. Shockingly, insurancefraud.org’s latest report reveals that insurance fraud accounts for a staggering $308.6 billion annually, driving up insurance costs and burdening policyholders. The report shows 9% of respondents don’t view insurance fraud as a wrongdoing; they see it as insurance companies exerting undue pressure or rightful compensation for hefty premiums; 28.6% believe insurance fraud isn’t truly a crime or is merely a business practice without genuine victims.

AI as a Double-Edged Sword:
AI tools create sophisticated fraudulent content for phishing and pilfer sensitive data from insurance policy accounts. Accuracy of insurance assessments is compromised, impacting claims payout rates. Insurers now reject photo claims due to the risk of doctoring. Falsified photos showing damages to specific car makes and models become vehicles for extracting claim payments. AI extends to life insurance scams, mimicking individuals’ photos and voices to initiate policies for non-insured individuals or non-beneficiaries.

Solutions

Strengthen Prevention and Enhance Detection: Agents and companies must brace for rising claims by leveraging AISecurius Business Security Perception and Defense Platform to defend against fraud risks in real time. AISecurius helps to monitor mobile app behavior, terminal devices, and operating environment; Establish a robust security system for early warning and risk tracing.

AISecurius | Fraud Detection | Business Security Perception and Defense Platform | AI DeepFake