Many of us have done it: bought a car and then posted a photo of it on social media to announce the news to our friends and family.And anyone who has sold a vehicle online will have almost certainly shared pictures of the motor from various angles, with the number plate in full view.But doing so is fuelling a rise in a new type of insurance fraud, one of the nation's leading insurers warns.Allianz UK said it combatted over 34,200 cases of fraud last year, with an estimated value of £174million. And AI-generated images are becoming its next major 'challenge'.Its specialist fraud detection unit has uncovered a growing trend of scam artists stealing vehicle images from social media and using artificial intelligence to simulate damage before submitting fake insurance claims.Other tactics include attempting to impersonate victims without their knowledge or consent, trying to change details, and 'collaborating with other criminals to sell compromised identities', the insurer warns.But it's not just professional swindlers who are using AI to commit insurance fraud; Allianz says it has tracked a rise in image manipulation to 'inflate damage in photos' from commercial and personal customers.'Fake images such as watches, jewellery, fabricated insurance documents and flooded property have all been used in attempts to get claims paid,' it said. Can you tell this is an AI-generated image? Allianz UK says this example of a BMW is just one photo that filed as part of a bogus insurance claim using photo-doctoring tech to add damage Allianz UK says its fraud detection team has seen a dramatic increase in cases of bogus claims being made using AI-doctored photos that innocent drivers have posted onlineAllianz says fraudsters are actively sourcing images of vehicles posted online where the number plate is clearly visible.These pictures are then manipulated using AI to add fake damage, which is then submitted to insurance providers when making bogus claims.According to a survey of 2,000 UK motorists, over half of drivers aged between 18 and 34 said they have previously posted a picture of their car online with the registration plate visible.In one case Allianz recently investigated, an individual had posted a picture of his van on his business social media page, and a claim was pursued in his name for an accident that never took place. Have you been victim of insurance fraud linked to AI-generated images? We want to hear your stories. Email: rob.hull@thisismoney.co.uk Allianz received images of his vehicle from the fraudsters, showing the front bumper had been 'cracked' in the alleged accident, along with a false repair invoice totalling around £1,000.Noticing concerns with the claim, Allianz tracked down the business's social media post and found the image was identical but with the crack added through AI photo editing.In another case, someone selling their car online was targeted when his Mercedes was used to fabricate a claim by a fraudster.Allianz received a claim for an accident that had been staged using a different Mercedes that looked very similar to the one online, with AI used to change the number plate.Fraud investigations revealed the car was, in fact, a different model and that the incident was fake.In another instance, Allianz received an uploaded driving licence from a customer applying for a car insurance policy.However, investigations revealed that AI had been used to create the image of the driving licence, and the identity used had been stolen. Another example of AI-generated damage added to a Renault Scenic MPV that it identified as fraudulent in the last yearAnother customer thought they had a genuine Allianz insurance policy, but they had unknowingly used a ghost broker who supplied fake documents using AI, leaving the driver completely uninsured on the road.Matt Crabtree, head of financial crime intelligence and investigation strategy at Allianz UK, says insurance fraud is constantly evolving and the rise of AI and photo editing has become the latest 'challenge for the industry'.He added: 'We're seeing a mix of fraudsters exploiting what they can find online to submit fake claims and take out insurance, as well as customers exaggerating and fabricating claims for money.'This is a wide-scale problem, as we're seeing it across all our products in both commercial and personal lines.'Our fraud team continues to develop existing fraud controls. However, the rapidly changing nature of how fraudsters operate poses significant risks to innocent drivers.'We continue to combat this type of fraud and demonstrate the value of insurers in keeping costs down for honest motorists, while also acting as a deterrent to anyone thinking of using a fake insurance claim to make extra money.' CARS & MOTORING: ON TEST