AI-doctored images behind 71% surge in fraudulent insurance claims
Tue, 21 Apr 2026
AI-manipulated images are behind an increase in insurance fraud claims as drivers use new technology to try with one in eight people admitting to exaggerating their insurance claims.
That's according to insurer Admiral, whose figures show that £86.8 million in fraudulent claims were made in 2025, up 71% from £50.9 million in 2024. Industry-wide, the figure for bogus claims was a staggering £1.16 billion in 2024, according to the Association of British Insurers.
And while you might think insurance fraud is all about gangsters and organised crime, Admiral says it's actually little white lies, helped by AI-manipulated images and documents, that are driving the trend.
The figures quoted by Admiral represent motor, home and travel claims, but the firm has revealed that recently doctored images its fraud team has intercepted include the same damaged car edited with a different numberplate to claim twice and damage to rear of a vehicle found to have been added later in Photoshop.
Dashcam to the rescue
Adimral also points out not just AI that's an issue, citing an example of someone attempting to claim for their own injuries and those of their mother following a minor car accident involving an Admiral customer. The latter's dashcam footage was used to prove that there was no-one in the car at the time, allowing Admiral to reject the fake claim.
Crime doesn't pay
Exaggerating an insurance claim means you risk having your claim rejected, policy cancelled and even face potential criminal prosecution.
However, Admiral confirmed that just 19% of those it surveyed would be discouraged by fear of legal consequences, and 27% didn't realise that things like exaggerating an insurance claim or making a claim based on false information is illegal.
“We have experts in all our product teams who are skilled at detecting fraudulent claims," says Sian Davies, Head of Financial Crime Prevention at Admiral. "We work closely with the industry to spot emerging trends, including AI-driven fraud, so genuine claims can be handled quickly and fairly. If you’re ever unsure about what to include in a claim, it’s always best to ask.”
