AI being used for fraudulent vehicle insurance claims

British insurer Admiral reports that Artificial intelligence (AI) is increasingly being used to exaggerate vehicle insurance claims.

It says a commonly detected type of fraud is the digital manipulation of images and fabricated documents being submitted on a regular basis.

This includes the same damaged car edited with a different number plate to claim twice, and damage to rear of vehicle added in photoshop.

In 2025, Admiral detected £86.8 million in fraudulent claims, up 71 per cent from £50.9 million in 2024 – a rise it is linking to people exaggerating their insurance claims.

Jon Radford of the Insurance Fraud Bureau (IFB), said: “Insurance fraud might look like an easy way to try your luck, but the consequences are anything but.

“Anyone caught faces being placed on the Insurance Fraud Register, making it extremely difficult to get insurance in the future, not to mention the real risk of fines or even a criminal conviction.

“Fraud isn’t a victimless crime. It puts innocent people at risk and drives up premiums for everyone else.”