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Lie detectors come to loans and travel insurance

08 July 2004
HBOS could soon expand its lie detector tests to include travel insurance customers and personal lending applications in a bid to stamp out fraudulent claims.

The bank already implements so-called voice stress analysis in its general insurance business to try and cut out fraud, which is estimated to cost the UK insurance industry £1 billion a year, The Herald newspaper reports.

The tests, which followed a three-month trial with specialist DigiLog, measure changes in speech patterns caused by stress such as when a person is lying, alongside conversation management techniques and a proprietary screening system.

In this week's Insurance Times magazine, Kerry Furber, DigiLog's managing director, outlined the potential for using the technology on HBOS travel and lending customers at a conference on the future of claims.

James Crosby, chief executive of HBOS, is also believed to be an advocate of the system that could be used to screen fraudulent claims and applications for loans from the bank.