AI facilitates rise in sophisticated tax and insurance fraud

The rise of generative artificial intelligence is facilitating more sophisticated fraud in both the insurance and tax sectors. In Norway, the Tax Administration has reported an increase in individuals using AI to manufacture realistic-looking supporting documents to claim fraudulent tax deductions. These activities have sometimes been organized and large-scale, leading to criminal reports. Authorities note that the threshold for creating forged documentation has lowered due to AI, but they are countering this with automated checks and risk-based audits. Recent investigations into various deductions have uncovered approximately 2 billion Norwegian kroner in false claims.

Similarly, in the insurance industry, companies like Pop Vakuutus have observed a rise in suspected fraud. Generative AI allows for the creation of highly convincing forged receipts and documents, making it easier for even less technically skilled individuals to attempt deception. While AI presents a challenge by making forgeries appear more authentic, insurance providers are also utilizing AI as a tool to analyze large datasets and improve the detection of fraudulent claims. Experts emphasize that while AI speeds up data processing, human specialists remain essential for evaluating results and ensuring the technology is used correctly.