South Korea to Launch AI-Based Insurance Fraud Prevention System

The country's financial regulator said Thursday that it plans to set up an artificial intelligence (AI)-based insurance fraud prevention system this year.

The Financial Services Commission (FSC) said it has launched a task force to set up the system in September this year at the earliest.

Last year, some 1.15 trillion won (US$753 million) worth of insurance fraud cases were detected, but the figure may spike to 9 trillion won when undetected cases are counted, according to the FSC.

The regulator said the planned system will respond to AI and deepfake-based insurance fraud and help better detect new types of fraud cases.