Deepfakes: The Next Frontier of Fraud for Insurers and How to Fight Back

11 November 2024 / 3 min read

You can’t browse LinkedIn or attend an insurance conference nowadays without encountering discussions about ‘deepfakes’. And for good reason - this emerging threat is gaining serious traction within the industry.

Deepfakes, a combination of "deep learning" and "fake", use artificial intelligence to produce ultra-realistic fake videos or images that are practically indistinguishable from genuine content. One recent high-profile example was a deepfaked video of Tom Cruise that went viral on TikTok, highlighting how convincing deepfakes can be.

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With the number of deepfake videos doubling every six months since 2018, it’s evident this problem isn’t going away¹. This exponential growth underscores deepfakes’ increasing potential for fraudulent activity, which already costs insurers billions every year. The true scale of the problem isn’t fully understood, and the evolving nature of deepfake technology only amplifies the need for insurers to be proactive in their response.

By manipulating video footage or images, deepfakes can enable a range of fraudulent insurance claims - from staged accidents to faked injuries. As a mum to a 13-year-old who can easily create deepfakes without needing technical skills, it's clear that generating convincing fake content is now within anyone's reach.

So how can insurers protect themselves against this insidious threat?

Build awareness internally

The first critical step is building deepfake awareness within your own organisation. Educate your staff through training sessions and open discussions about spotting manipulated media. Establish clear policies for handling deepfake threats that may arise. Run internal simulations to create “deepfakes” and test your response plans. Building a culture of awareness and vigilance is key.

At Verisk Claims UK, we’ve created an “AI sandbox” for experimenting with deepfake tech. This equips our staff to recognise risks, while also using the tech responsibly to enhance things like marketing.

Data sharing is key

Creating a collaborative environment that encourages employees to share insights and suspicions regarding potential deepfake threats can strengthen an insurer's defence. Building this network of awareness can serve as an early warning system, helping to detect and mitigate potential risks before they escalate.

And beyond internal measures, insurers must actively engage in industry-wide initiatives to tackle the deepfake challenge collectively. Information-sharing platforms and industry conferences focused on emerging threats, can contribute to a more comprehensive understanding of the evolving landscape of deepfake fraud.

Deploying AI technology

Technological advancements can be a double-edged sword – as much as fraudsters exploit technology, insurers can use it to aid in the detection of deepfake fraud. But the trick is to try and stay one step ahead of evolving trends, which isn’t always easy without the right technology.

As a partner to the insurance industry, Verisk Claims UK are already developing technology to detect deepfakes to assist insurers in this fight against this threat. Our Anti-Fraud One UK suite of products uses AI technology, deep data and our insurance market expertise to help insurers fight the battle against fraudsters.

As the insurance industry faces the challenges of the digital era, addressing the threat of deepfake fraud is not just necessary but a strategic imperative. And as deepfake technology grows more advanced, so too must an insurer's defences against this emerging fraud threat. By combining vigilance, protective technologies, collaboration, and education, insurers can develop organisational resilience against this challenge.

Verisk's Digital Media Forensics looks to address the growing issue of AI manipulation through its digital media checks. Find out more here.

https://cybernews.com/privacy/report-number-of-expert-crafted-video-deepfakes-double-every-six-months/