Warning that 'shallowfake' images are the 'next big scam' to hit Britain: Fraudsters are mocking-up pictures of car damage to con insurers - with number of cases surging by 300 PER CENT in a year

Fraudsters are using 'shallowfake' technology to tamper with photos of car damage in the 'latest big scam' which is driving up insurance costs, the industry has warned. 

Scammers are doctoring photos and documents to make fake claims for thousands of pounds to con insurers.

Insurer LV said cases with distorted images, videos, and images had rocketed by 300 per cent in 2023 and described 'shallowfake' photos as having 'all the signs of becoming the latest big scam to hit the insurance industry'. 

Software readily available to fraudsters means they can easily manipulate the photos, Zurich's head of fraud Scott Clayton said.

He warned fraudsters are photoshopping registration numbers onto total loss vehicles and making claims. 

Have YOU been a 'shallowflake' victim? Email megan.howe@mailonline.co.uk 

In one known case, a picture of a tradesman's van had been lifted from his business's social media page and then doctored with cracks on the front bumper which scammers claimed had been caused in an accident.   

Matt Crabtree, LV's head of financial crime intelligence, told The Times fraudsters are using the technology for their 'their own illegal purposes and to target innocent members of the public to make a profit'.

Insurers though are fighting back and are turning to modern technology themselves to detect the fraudsters. 

Last week, Allianz said it had prevented 29 per cent more fraud and announced a new partnership with voice analytics tool Clearspeed to detect more scammers. 

Mr Clayton said Zurich was seeing 'more and more' claims that have been manipulated with shallowfake technology. 

He said: 'This is becoming one of the most emerging threats from a counter-fraud point of view.

'There's software that is easy for fraudsters to access which can manipulate images. For example, we have seen devices that if you were to draw a picture of a building, it could provide that building with impact damage or a broken window.'

Long-suffering motorists faced another car insurance premium hike this year, with the average driver now paying a record £635 for cover.

This is another record high, and a rise from £627 in the final three months of 2023, the Association of British Insurers (ABI) said. 

Insurers said that claims costs, thefts and repair prices were behind high car insurance premiums. 

ABI director of general insurance policy Mervyn Skeet said: 'We understand that car insurance costs are putting pressure on household finances. These figures show how competitive the motor market is, with insurers absorbing significant cost rises but keeping prices relatively stable.

'Even though these figures demonstrate a slowdown in price increases, we won’t be taking our foot off the gas when it comes to our work on tackling the cost of cover.'

Have YOU been a 'shallowflake' victim? Email megan.howe@mailonline.co.uk