Seoul: The country's financial regulator announced plans to establish an artificial intelligence (AI)-based insurance fraud prevention system before the end of the year. The Financial Services Commission (FSC) has initiated a task force dedicated to developing this system, aiming for a launch date as early as September.

According to Yonhap News Agency, last year, insurance fraud cases amounting to approximately 1.15 trillion won (US$753 million) were identified. However, the FSC estimates that the actual figure, including undetected cases, could reach as high as 9 trillion won. The introduction of this AI-backed system aims to address fraud involving AI and deepfake technologies, enhancing the detection of emerging fraud tactics.