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by Jennifer Gibbs

As the claims adjustment process becomes more automated, the potential for fraud using shallowfake and deepfake technology has also increased. “Shallowfake” technology involves manipulating existing documents and images using editing software, whereas “deepfake” technology is a form of artificial intelligence that can be used to create convincing - yet completely fake - images, documents, sounds, and videos.

Scott Clayton, Zurich's head of fraud reports a significant increase in claim photos that have been manipulated with shallowfake technology. In what has been predicted to be the “latest big scam” to affect the insurance industry, fraudulent actors have been finding vehicles classified as total losses on salvage sites, and then manipulating images with digital editing tools by placing a different license plate on the vehicle and filing a false insurance claim. Notably, this scam does not require sophisticated artificial intelligence technology, but can be perpetrated using widely available editing software such as Photoshop. 

In response to this growing threat, insurers are expected to rely upon digital forensics companies to identify and prevent this type of fraudulent activity. One such company, Envista Forensics, has a number of interesting videos on LinkedIn by Lars Daniel illustrating how both shallowfake and generative AI technology can be used to manipulate photos and other evidence to support an insurance claim.  

With the development of sophisticated technology aimed at preventing the use of shallowfakes, it is only a matter of time before this type of fraud becomes obsolete. However, this latest scam highlights the need for insurers to continue to stay educated regarding technological advancements to combat fraud utilizing shallowfake and deepfake technologies.

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The opinions expressed are those of the authors and do not necessarily reflect the views of the firm or its clients. This article is for general information purposes and is not intended to be and should not be taken as legal advice.