From November 17-23, 2024, International Fraud Awareness Week will shine a spotlight on the increasing threat of fraud worldwide. In the UK, fraud has surged to unprecedented levels, as detailed in the latest Fraudscape 2024 report from CIFAS. While filings to the National Fraud Database (NFD) fell by 9% in 2023 to 374,160 cases, this remains a 4% rise compared to 2021.
Insurers face a growing challenge as fraudsters leverage increasingly sophisticated tactics. Identity fraud remains the most prevalent type, representing 64% of filings, with AI-powered data harvesting and falsification techniques making detection more difficult. The rise of AI-generated false identities and AI voice manipulation further complicates verification processes, especially during Know Your Customer (KYC) checks.
False applications also remain a concern for insurers. The Fraudscape 2024 report recorded a 36% rise in fraudulent loan applications and a 20% increase in insurance-related fraud, including falsified no claims discounts, which rose by 100% compared to 2022.
To address these challenges, CRIF provides a suite of cutting-edge solutions tailored to the insurance sector:
- ID and AML Checks: A wide range of digital tools to help insurers, solicitors and businesses manage business risks, confidently conduct due diligence for anti-money laundering purposes and effectively prevent fraud.
- Sherlock Investigation: A powerful solution offering counter-fraud intelligence in just one click. By streamlining the investigation process, Sherlock helps insurers reduce investigation times by approximately 30%, cutting costs and providing actionable insights based on data such as linked addresses and vehicle history.
- Sherlock Detection: Using AI-driven risk assessment, Sherlock Detection enables insurers to make faster, evidence-based decisions on claims, with results delivered in under three seconds. This ensures that fraud detection is not only faster but also more accurate.
- CRIF Open Banking Suite: This solution leverages open banking data to provide insurers with deep insights into customers’ financial situations. By securely accessing and categorising current account transactions, insurers can assess affordability, identify potential fraud risks, and personalise products based on real-time financial data.
As fraudsters continue to evolve their tactics, the insurance sector must stay ahead by adopting proactive strategies and advanced technologies. CRIF’s solutions empower insurers to tackle fraud effectively, reducing risk while improving operational efficiency.
For more information on Fraud Awareness Week: https://www.fraudweek.com/
