More UK claims handlers seeing AI-driven fraud

A significant percentage of UK claims handlers believe up to a quarter of claims submitted involve false supporting documents manipulated by artificial intelligence, a new survey has found.

A UK survey from automation company Sprout.ai shows that 19% of respondents believe that one in four claims involve false supporting documents created or altered using AI or digital tools. The report also shows that 65% of insurance claims handlers have seen an increase in fraudulent claims since 2021.

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

The survey appears to indicate that fraudsters are realizing that they can create convincing fake evidence by altering images and proving documents that can fly under the radar, especially when claims fall below a certain threshold and can be approved more easily. Almost all (93%) claims handlers believed scammers focused on lower-value claims in the £501 to £1,000 ($668.32 to $1,333.97) range, the survey found.

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