AI-powered photo and document editing tools are making insurance fraud easier to commit and harder to detect, according to new research commissioned by Verisk.
The Verisk State of Insurance Fraud study found that 36% of consumers said they would consider digitally altering a claim image or document even if it would violate insurer rules. At the same time, insurers surveyed reported a surge in manipulated media tied to AI tools, with 98% agreeing that AI-powered editing is fueling an increase in digital insurance fraud.
Verisk, a data analytics and technology provider for the insurance industry, said the research was designed to examine how artificial intelligence is reshaping consumer behavior, fraud risk and insurer readiness.
“AI editing tools are changing how people interact with digital content, and insurance is feeling that shift in real time,” Shane Riedman, president of Anti-Fraud Analytics at Verisk, said in a statement. He added that consumers may not view minor edits as “crossing a line,” but changes included in claims “can materially affect outcomes.”
The study suggests AI manipulation is no longer limited to technical users. Among consumers who have used AI editing tools to modify a photo, video or document, 44% described their results as “very realistic,” Verisk said.
In addition, 41% of consumers said they know someone who has used AI editing tools to alter or create media for financial gain, including for insurance claims, product returns or online sales. That figure rose to 64% among Gen Z respondents and 54% among millennials, the study found.
When asked about insurance specifically, 62% of consumers said they believe people use AI tools to manipulate claim documents often or very often. Insurers reported similar experiences: 99% said they have encountered manipulated or AI-altered documentation, and 76% said AI-altered claim submissions have become more sophisticated over the past year.
The research also pointed to what Verisk described as an ethics gap across generations. Half of Gen Z respondents said they would consider making a digital edit to strengthen a claim, compared with 49% of millennials, 28% of Gen X and 12% of baby boomers.
Consumers expressed mixed views on what kinds of edits are acceptable. Just over half (52%) said adjusting brightness or contrast to make damage easier to see is acceptable, and 49% said cropping out unrelated background elements is acceptable. Smaller shares said it is acceptable to exaggerate damage (15%) or create images of damage that never occurred (13%).
Insurers are investing in detection, but many remain concerned about scale and advanced manipulation, Verisk said. About 65% reported using automated, AI-based detection tools from third parties, while 50% said they use internally developed AI tools. Still, only 32% said they are very confident they could identify a deepfake.
The study is based on two national surveys: 1,000 U.S. consumers and 300 insurance claims professionals.
