It typically happens when a policyholder takes a legitimate insurance claim and exaggerates the situation to receive a higher payout. For example: Soft fraud can also happen if a policyholder lies ...

That’s called fraud. Insurance fraud. Many people think the above examples are not fraud and are really just how the world works, that they’re built into the system, into the pricing.

One example of a doctored image given by LV ... Earlier this year, Scott Clayton, the head of fraud at rival insurance firm, Zurich, said companies must “prepare for a rise in deepfake AI ...