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Thu, 16 Apr 2026

Thu, 16 Apr 2026 Fake damage and imaginary watches - how AI images are being used in insurance scams

An insurer reports a 71% rise in fraudulent claims, driven partly by an increase in faked images.

* Cardiff-based insurer Admiral recorded a 71% rise in fraud cases in 2025, partly due to the use of artificial intelligence (AI) software to manipulate evidence.
* The Insurance Fraud Bureau said the industry is "heavily concerned" about AI-generated claims and is investing in technology to tackle the threat.
* Customers who invent or exaggerate a claim risk having it rejected, their policy cancelled, and potential prosecution.
* Admiral's fraud team detected AI-generated images and documents submitted as part of insurance claims, including: + A fake gold and diamond watch + Exaggerated damage to a car's back panel + A changed and repositioned car number plate
* The industry is collaborating to tackle the threat posed by AI-generated claims from customers and organised crime gangs.
* The Insurance Fraud Bureau said "opportunistic" customers are using AI to exaggerate genuine claims, while organised crime gangs use it to create fake documents.
* Those caught cheating the system can face criminal charges, with potential consequences including a conviction, financial difficulties, and even being forced to leave the country.