Survey: More U.K. Claims Handlers Seeing AI-Driven Fraud

A significant percentage of U.K. claim handlers believe that up to a quarter of claims filed involve fake supporting documents doctored by Artificial intelligence, a new survey shows.

A survey in the U.K. from automation company Sprout.ai shows 19% of those surveyed believe that one-in-four claims involve fake supporting documents created or altered using AI or digital tools. The report also shows that 65% of insurance claim handlers have noticed an increase in fraudulent claims since 2021.

The majority (64%) of claims handlers suspect that AI has been used to alter claims documents in 5% and 10% of all cases.

The survey seems to indicate that scammers realize they can create convincing fake evidence by making alterations to images and proving documents that can fly under the radar, particularly when claims fall below a certain threshold and may be more readily approved. Nearly all (93%) claims handlers believed scammers were focused on claims of smaller value within the £501 to £1000 ($668.32 to $1333.97) range, the survey shows.

The total sample size was 200 claims handlers from the UK. Participants included 50 claims handlers from the pet, travel, health/dental and home insurance sectors. The survey was conducted online between July 1 and 25.