Fake damage and imaginary watches - how AI images are being used in insurance scams

Fake damage and imaginary watches - how AI images are being used in insurance scams2 hours agoShareSaveAdd as preferred on GoogleHuw ThomasWales business correspondentAdmiralAdmiral said an AI-generated number plate was applied to this damaged Land Rover, while a similar image with a different number plate was used in a duplicate claimFake number plates, imaginary watches and exaggerated damage have all been found in AI-generated insurance claims.Cardiff-based insurer Admiral recorded a 71% rise in fraud during 2025 compared to the previous year, partly blaming the increased use of artificial intelligence software to manipulate evidence.The Insurance Fraud Bureau said the industry was "heavily concerned" about AI-generated claims and was "investing in technology" to tackle the threat.Customers risk having their claim rejected, their policy cancelled and potential prosecution if they invent or exaggerate a claim."This is a trend across the entire insurance industry," said Haith from Admiral's household claims team. "We see AI that's been used to manipulate images to look like they've been damaged in a certain way, even to create and fabricate documents that were never there in the first place."Due to the nature of their work, BBC Wales was asked not to use staff surnames.AdmiralSome customers used basic AI-generated images to try and commit insurance fraud, including this simple watch design that was submitted as evidence to Admiral in a customer's claim The wider insurance industry is collaborating to try and tackle the threat posed by artificial intelligence from customers and organised crime gangs.Documents shared with BBC Wales showed how artificial intelligence had been used to manipulate images and create photos of items that never existed.They were all submitted to Admiral as part of an insurance claim, but were detected by the firm's fraud team.They include a picture of a gold and diamond watch...