Shallowfakes and the Rise of Car Insurance Scams in the UK
Fraudsters are increasingly using manipulated photos, known as “shallowfakes,” to deceive car insurance companies in the UK. This rise in fraudulent activity is significantly contributing to higher insurance premiums for consumers across the country.
One case involved a tradesperson’s van, where damage was digitally applied to an image from social media to fabricate an insurance claim.
The insurance industry is seeing a sharp increase in these types of scams. Allianz reported a 300% surge in incidents involving manipulated images and documents between 2021 and 2023. Zurich UK has also noted a growing number of claims doctored with shallowfake technology, seeing it as a key and emerging threat to their industry.
While deepfakes use AI to create entirely fabricated content, shallowfakes use common editing software to alter existing photos and videos.
One common scam involves fraudsters finding total loss vehicles advertised on salvage agents’ websites. They then add a registration number to the car and submit claims saying it is the actual vehicle involved in an accident. Claims handlers assess the claims at face value, unaware of the manipulation.
Previously, criminals needed to actually stage “crash-for-cash” incidents, but now they can orchestrate fraudulent claims from anywhere using only a computer to extract large sums of money, given that the cars in question are total losses.
This surge in fraud claims is a major factor in soaring car insurance costs. The average cost of comprehensive motor insurance in the UK rose by about one-third, or £157, in the first quarter of this year compared to the same period in 2023, according to the Association of British Insurers.
