Survey Highlights Growing Use of AI-Driven Manipulation in Claims
Artificial intelligence-powered editing tools are lowering the barrier to insurance fraud, with both consumers and insurers reporting a rise in AI insurance fraud with respect to manipulated claim submissions. Doctoring techniques range from simple lighting fixes and fixing a blurry image to major alterations of an image for financial gain.
“AI editing tools are changing how people interact with digital content, and insurance is feeling that shift in real time,” said Shane Riedman, president of Anti‑Fraud Analytics at Verisk. “Our concern is that many consumers don’t see small edits as crossing a line, but when those changes make their way into claims, they can materially affect outcomes.”
The Verisk State of Insurance Fraud study, based on surveys of 1,000 U.S. consumers and 300 insurance claims professionals, indicates that more than one-third of consumers (36%) would consider digitally altering a claim image or document, even if doing so violates insurer rules. That figure rises to 55% among Generation Z.
At the same time, nearly all insurers (98%) report that AI-powered editing tools are fueling an increase in digital fraud, while 99% say they have encountered manipulated or AI-altered documentation.
Accessibility of AI Tools Expands Fraud Exposure as ‘Anybody Can Do It’
AI‑powered editing tools are no longer niche or technical – they’re often widely used, easy to access, and increasingly realistic. Nearly half (44%) of consumers who have used AI editing tools to modify a photo, video, or document describe the results of their edits as “very realistic,” underscoring how convincingly altered content can now resemble the real thing.
Among consumers who have used such tools, 44% describe the outputs as “very realistic.”
Consumer exposure to manipulated content is also increasing:
- 41% say they know someone who has used AI tools to alter or create a photo, video, or document for financial gain – including in insurance claims, product returns, or online sales.
- That figure scales to 64% for Gen Z and 54% for Millennials
- More than half of consumers (62%) believe AI tools are used often or very often to manipulate insurance claim documents.
“As manipulated media becomes more common, many insurers face growing pressure to establish clearer boundaries, improve visibility, and prevent fraud – while preserving a fair and efficient claims experience for policyholders,” noted Riedman.
Generational Divide Emerges in Insurance Fraud Behavior
There is also a widening generational gap in attitudes toward AI-driven insurance claim manipulation. While only 12% of Baby Boomers and 28% of Gen X respondents surveyed said they would consider editing a claim, over half, 55%, of Gen Z and 49% of Millennials surveyed said they would consider manipulating a submission.
The study also found that while some consumers view minor edits as acceptable—such as adjusting brightness (52%) or cropping images (49%)—a smaller but notable share considers more serious actions acceptable, including exaggerating damage (15%) or fabricating evidence (13%). These data points highlight a ‘growing ethics gap’ whereby AI tools are normalizing behaviour towards how insurance claims are submitted. This, in turn, will create future challenges for insurers as they look to maintain standards of “fairness, consistency, and trust.”
Insurer AI Fraud Detection Capabilities Lag Behind Threat
As for insurers, two-thirds report increasing difficulty keeping pace with more sophisticated, manipulated media:
- 76% say altered submissions have become more sophisticated in the past year
- 66% believe digital media fraud goes undetected often or very often
While many insurers are deploying technology to address the issue of manipulated insurance claims:
Confidence in detection remains limited, however. Only 32% of insurers report being very confident in identifying deepfakes, and fewer than half (43%) feel very confident assessing authenticity at scale.
“Insurers aren’t standing still, but the threat is evolving faster than many systems were built to handle,” Riedman said.
Broader Impact on Premiums and Claims Handling
Ultimately, both consumers and insurers expect AI-driven fraud to have system-wide implications:
“This isn’t a problem any one insurer can solve in isolation,” Riedman said. “As digital manipulation techniques evolve and deepfakes become more prevalent, many insurers are under pressure to close structural and operational gaps and move toward more connected systems.”
- 69% of consumers believe fraud will increase premiums for all policyholders
- 42% cite higher premiums as a primary concern
- 36% are concerned legitimate claims could be delayed or denied due to fraud screening
Looking ahead three to five years, 48% of insurers anticipate that both AI-driven insurance fraud and AI-driven insurance fraud protection will reshape the industry. This will include tighter documentation requirements (45%), longer claim cycle times (35%), and higher premiums (35%).
Key takeaways for insurance professionals
The following are three main takeaways from the Verisk report:
AI-driven fraud is becoming a systemic cost driver
Both insurers and consumers expect digital media fraud to lead to higher premiums, increased claim scrutiny, and more complex claims handling, extending the impact well beyond individual losses.
Insurer capabilities are improving, but remain behind the threat
Carriers are investing in technology, talent, and processes, yet detection gaps—particularly around deepfakes and cross-industry coordination—indicate fraud prevention remains an evolving challenge.
A widening ethics gap is increasing fraud exposure
Consumer behavior, especially among younger cohorts, reflects a growing acceptance of “minor” manipulation, blurring the line between legitimate documentation and fraud and increasing risk throughout the claims process.
How to access the Verisk study
The Verisk State of Insurance Fraud study is based on two national surveys designed to assess how AI editing tools are influencing consumer behavior, fraud risk, and insurer readiness. A copy of the report can be obtained by filling out a form on the Verisk website.
