If you can't tell the difference, you're not alone — and the price tag is steep

Here are three images: a suburban collision scene (pictured above), a damaged yellow car with a cracked windscreen, and another accident photograph (both below).

Two are entirely or partially fabricated using artificial intelligence. One is real. If you cannot tell the difference, neither can many insurers - and that is precisely the problem.

Insurance fraud has added an average of 50 to consumer annual premiums, as new research demonstrates how artificial intelligence can create convincing fabricated claims scenes that closely mirror tactics used by fraudsters and organised crime groups.

Data and AI firm SAS conducted a study showing how generative AI can produce doctored insurance images in seconds.

The research comes as the Insurance Fraud Register reports the 50 average premium increase linked to fraudulent activity, while payment platform Adyen found the average cost of a fake claim has reached 84,000, with one in seven claims proven fraudulent.

Industry sources were already reporting last year that some drivers are using AI-generated images to present exaggerated vehicle damage in motor insurance claims.

Generative Adversarial Networks are making it increasingly difficult to distinguish between genuine and altered images, with Zurich reporting a rise in the use of digital technology in false or misleading claims, including digitally modified imagery.

Anatomy of a fabricated claim

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