The insurance industry is starting to consider offering policies tailored to address business interruption or reputational damage caused by the use of deep fake technology.
In early 2024, a U.K. engineering company called Arup faced a $25 million loss due to a deep fake scam, where a finance worker was deceived by an elaborate deep fake impersonating the company’s top executives in a video call.
According to Matthew McCabe, U.S. and Canada cyber product leader at Marsh, deep fakes have not had a significant impact on cyber insurance yet, as cybercriminals find it easier to exploit other vulnerabilities. However, the threat remains significant.
Courtney Horrigan, partner in the insurance recovery group at Reed Smith, mentioned that monetary losses from a deep fake scam may be covered under other commercial insurance forms. She also noted that commercial insurers are starting to offer coverage for AI-related issues and may expand existing reputational damage coverage to include deep fake scams.
However, coverage against deep fake scams will come at a cost, with insurers potentially requiring new security training to address this emerging threat. Policyholders are considering independent verification products to help detect deep fakes as they approach their renewals.