Seoul: South Korea's financial regulator announced plans to establish an artificial intelligence (AI)-driven insurance fraud prevention system within the year.

According to Emirates News Agency, the Financial Services Commission (FSC) has initiated a task force aimed at implementing the system as early as September. In the previous year, the FSC identified insurance fraud cases amounting to 1.15 trillion won (approximately US$753 million). However, the regulator estimates that the total figure, including undetected cases, could rise to 9 trillion won.

The FSC stated that the new system is designed to address AI and deepfake-related insurance fraud, enhancing the detection of emerging fraud types.