Did Open AI make Insurance Fraud easier?

Did Open AI make Vehicle Insurance fraud easier? After the latest ChatGPT Image Generation update, this has become a burning question in the Insurance industry.

For those unaware, Open AI recently launched an updated version of image generation for the GPT 40 model that is much smarter and more refined than its existing Dall-E 3 model.

For context, here's what it looks like now -

Both these images are AI-generated and yet, they look so realistic. (Read more - https://openai.com/index/introducing-4o-image-generation/)

However, the insurance industry has a bigger problem - Does this mean users can now generate images or fake vehicle damages to raise fraudulent insurance claims?

Linas Beliūnas raised the same query on LinkedIn a few days ago. Honestly, the results generated from the prompts are quite impressive.

Given that the insurance industry loses $80B+ yearly in the USA alone, this is quite a big problem to be worried about. But is this problem a concern?

Our answer? Inspektlabs already has a solution to tackle this problem.

While we did answer this question briefly on LinkedIn, we will explain our approach in detail in this blog. Read on!

How Inspektlabs solves this problem

Inspektlabs' vehicle inspection solution comes pre-built with many fraud prevention mechanisms that can help tackle this problem. For instance -

Inspektlabs allows direct-capture only

The first (and easiest) step to avoid these cases is to disable the option to upload images. And that's precisely what our product does.

When using Inspektlabs' damage detection solution, users can only capture images and videos of the damaged vehicle in real-time. This ensures that the user cannot feed any edited/morphed pictures or videos into the system to raise a claim for damages that don't exist.

The result? Even if ChatGPT can generate high-quality images with fake damage, it won't be helpful when using Inspektlabs' AI model for damage detection.

Inspektlabs AI comes with Playback detection

But what if someone captures a pre-existing image/video of forged damages during the inspection process? 

That’s a fair concern. It is quite possible for someone to capture an image or video of a damaged vehicle on a screen and upload it for inspection. 

However, our AI model is trained to identify these instances and can flag them as attempts at fraud in case anyone tries to do so. We have been cautious in training our model to detect such cases, and it's safe to say that we have achieved great success in this field. 

Inspektlabs also tracks crucial metadata

While real-time image/video capture works great to avoid the chances of potential fraud, we take it one step further and capture metadata that cannot be tampered with. 

This data includes information like the GPS coordinates of where the image/video was captured, device information, media encoder data, timestamps, etc., which our AI model can read to analyze whether an image/video has been tampered with. 

This adds a layer of security, ensuring that the information we receive during the inspection process is authentic and not tampered with. 

Also read - Fraud detection using AI for car damage assessment by Inspektlabs

There’s more innovation in progress at Inspektlabs

Along with the features mentioned above, we are also working on new ways to identify and neutralize these cases to prevent as much fraud as possible. 

For beginners, we are currently training our AI model to differentiate between real and AI-generated images to fight cases where we allow clients to upload pictures/videos of damage. 

We are training Convolutional Neural Networks (CNNs) or transformer-based models like Vision Transformers (ViTs) to distinguish between AI-generated and real images. 

(For context - Meta is trying to achieve something similar for their social media platforms)

Conclusion

While Open AI and it’s innovation in Artificial Intelligence models are pretty notable, there are some valid concerns about how it can be misused with malicious intent, such as Insurance Fraud. 

However, with companies like Inspektlabs always at the forefront of evolution and working constantly towards solving the challenges of an essential industry like Insurance, fraudsters are unlikely to get away with it as easily as they think. 

Inspektlabs has already built multiple solutions, such as real-time damage capture, playback detection, and metadata analysis, to tackle such problems. More interesting innovations are being developed to make this process more foolproof. 

Stay tuned for more such updates, which are coming soon!