How to manage the rise in AI-enabled fraud

AI tools allow fraudsters to create fake evidence at scale, with a level of sophistication and realism that makes fraudulent activity harder to detect at an early stage

A REPORT from Cifas, the UK’s leading anti-fraud body, recently warned that a record number of AI-enabled scams were reported to the national fraud database. The report showed 444,000 reported cases of fraud in 2025 — a 6% increase from the previous year. This increase is, unfortunately, unsurprising. The UK insurance industry is witnessing an unprecedented rise in fraudsters using AI tools to enhance their capabilities.

Whilst the preparation of false documentation has long been something insurance lawyers have had to be wary of; generative AI platforms have significantly lowered the barrier to entry. Specialist knowledge is no longer required to create such documents — AI-generated evidence, images, and pleadings can now be produced within seconds, and by any tech-savvy individual.