Action Against Fraud - Speaking with Kevin Perkins

27 February 2024

We spoke to our Technical Lead and Operations Manager, Kevin Perkins, on his thoughts of staying ahead of the fraud curve & how AI could affect the rise of fraud.

Q. How do you feel the insurance industry can collectively stay ahead of the fraud curve?

A. "There are significant variances in each individual insurer’s ability to detect fraud with some insurer’s relying on more rudimentary methods whilst others are able to commit significant resource towards their counter fraud operations. In a free market this obviously leads to competition, in terms of premiums, with those insurer's who are able to root out and stem the tide of fraud through impressive and complex fraud detection strategies being able to adjust their pricing accordingly.

However, competition aside, I recently contributed an article to the Insurance Times commenting upon how I thought a collegiate approach was a significant ethos all insurer's should adopt in the ongoing fight against fraud. There is, in my view, a shared ethical responsibility on the insurance industry to do all they can to stave off, promote awareness of and punish those who are found to be culpable of it. This obligation not only extents to insurer's but the various firms and suppliers who represent them.

Whilst I am not for one minute advocating insurer’s give up their trade secrets or bespoke fraud detection strategies, I do believe that a certain level of engagement or knowledge sharing between stakeholders is key; this is certainly proper in an age where technology and, in particular, A.I are making rapid progression.  

Whether it be liaising with the IFB and it’s members in terms of suspected fraudulent activity, communicating specific concerns or behaviours, or simply highlighting a particular success through both the legal and mainstream press the message has to be made clear that the industry is doing all it can to bring the issue to the fore and that there will be a zero tolerance shown to those actively engaged in it.

I came across the following quote and thought it summed up the point I am trying to make perfectly: -

“There is immense power in a group of people with similar interests getting together to work toward the same goal.”

Idowu Koyenikan, Wealth for All: Living a Life of Success at the Edge of Your Ability


Q. With the rise of Artificial Intelligence, do you feel this could impact the rise of fraud?

A. "I briefly mentioned technology in my response above and whilst this, of course, is a powerful tool in the fight against fraud, the flip side of that is the fact that it is equally as powerful in enabling it; and front and centre of this is the rapid advance of A.I.

The possibilities of AI seem limitless and there is extraordinary potential for it to be of a benefit to humankind. However, to each Yin there is a Yang and A.I, the power of it, will certainly be on the radars of those facilitating criminal enterprises; without a shadow of a doubt it will upscale the sophistication of fraud.

From personal experience I know insurer’s are facing ever more complicated and persuasive documents in support of bogus claims all created by A.I with validation of the same being a high priority. However, other concerns involve deep fakes and the use of voice clones; I’m sure we’ve all seen various ‘adverts’ on social media seemingly endorsed by celebrities which, as convincing as they are, are totally bogus and have nothing to do with the individuals said to be promoting them.

One thing is for sure, A.I isn’t going to go away; insurer’s must, to borrow a phrase from the previous question, do all that they can to try and stay ahead of the curve in terms of those individuals who are intent on using it for unscrupulous reasons and in pursuit of ill-gotten gains."