Drivers could be using AI-generated images to exaggerate car damage to claim more car insurance, according to experts. Online tools can now create realistic-looking photos within seconds with the new technology likely to backfire on the motor industry.

Experts warn that Generative Adversarial Networks (GAN) introduced within the past few months on mainstream image generation tools have likely worsened the problem. They suggest it was fast reaching a stage where not even experts can tell whether a photo is authentic or altered by technology. Neil Avent, chief technical officer at FleetCheck, said businesses were at risk of being caught out as fake photos became more believable. 

Speaking to FleetNews, he said: “If you take an image of a vehicle that has been involved in an accident and asked AI to ‘add scratches and light dents along the door panel’ today then the output is much more convincing than it was even last year.

“If an employee is involved in a collision, the driver of the other vehicle may take pictures of the damage incurred and ask AI to basically make it worse to increase the value of the claim.”

Last year, Zurich warned they had seen a “surge in fraudsters” using technology to make artificial insurance claims. 

Zurich says some examples have included completely fabricated repair invoices, engineer reports and repair estimates.

Fraudsters have also been found photoshopping registration numbers onto total loss vehicles. 

They warned it was fast becoming possible for road users to "create a fraudulent claim entirely from behind their computer”. 

Scott Clayton, Zurich's head of fraud, stressed the company had basic balance validation checks to support claims handlers. 

However, he suggested that the industry as a whole needed to establish some capable technology to help identify fake claims."

Meanwhile, Neil Avent added that drivers had a role to play in stopping the fraudsters by accident damage was photographed and recorded straight after a collision. 

He added: “Fleets should be aware of the growing potential for fraud and its resulting impact on their insurance costs.

“However, there is a simple solution – asking your drivers who are involved in collisions to take pictures of all the vehicles involved, meaning that a complete record of the accident is created and later use of AI can be much more easily identified.”