Fake 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.
