Scammers are using artificial intelligence to steal identities, create fake insurance policies, and submit fraudulent claims, Oklahoma's Insurance Department warned this week. The growing threat can leave victims with denied medical care and surprise bills from policies they never purchased.
Rick Wagnon, director of the anti-fraud unit for the Oklahoma Insurance Department, said fraudsters are quick to adopt new technology. "The fraudsters are usually the first early adopters of new technology, unfortunately," Wagnon said.
AI tools can alter photographs, generate fake receipts, and create supporting documents to submit with fraudulent claims. Beyond individual schemes, organized groups are systemically setting up multiple claims using AI. "The real concern when we start looking at large losses is organized activity where groups systemically set up multiple claims through artificial intelligence," Wagnon said.
Fraud takes multiple forms
Wagnon said scammers either impersonate victims to obtain insurance and submit claims, or they impersonate insurance agents, signing people up and collecting commissions. This has led to people being denied medical care because a carrier they never enrolled with appears in their records. Some residents receive billing statements from unfamiliar insurers, only to discover they were signed up for marketplace or exchange policies without their knowledge.
How scammers harvest personal data
Scammers collect personal details from social media profiles with weak privacy settings. AI tools can scour the internet to compile detailed profiles, which are then used to enroll people in policies or file claims in their names. Wagnon also warned that scammers can capture a person's voice from a phone call, needing only a few words. "Do not say anything. I wouldn't even answer the phone," he said. With a few audio snippets, fraudsters can generate entire conversations mimicking someone's voice, and a handful of photos can create deepfake video.
Steps to protect yourself
Wagnon offered several concrete steps to reduce risk:
- Do not answer calls from unfamiliar numbers. Scammers need only a few words to clone your voice.
- Review your mail carefully. Do not discard correspondence from unfamiliar insurance carriers without first checking whether you have been enrolled in a policy without your knowledge.
- Check your Explanation of Benefits (EOB) statements closely for charges for treatments or prescriptions you did not receive.
- Monitor your credit reports regularly for signs that your identity has been used to obtain insurance or other services.
- Tighten your social media privacy settings to limit who can view your personal information and photos.
Tulsa resident Cynthia Driver said she already makes a habit of reviewing her statements. "I did get some EOBs in the mail this morning. I always check through those to make sure there's not any odd charges on there that did not apply," she said.
What to do if you think you're a victim
If you find charges for services you did not receive, or discover policies you did not purchase, contact the Oklahoma Insurance Department or the Oklahoma Attorney General's Office.
Why this matters for insurance professionals
AI-generated fraud is expanding across all areas of the insurance marketplace, and insurers are increasingly turning to their own AI tools to detect it, a trend covered in broader AI for Insurance training. Even legitimate claimants can trigger fraud detection systems if they edit or enhance photos before submitting them to an insurer. Professionals should advise clients to always submit original, unaltered documents and photos with any insurance claim. Understanding how fraud detection systems work can help agents and adjusters avoid false positives and ensure genuine claims are processed without delay.
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