'Connected data is transforming the fight against fraud': New report warns AI is fuelling a major rise in insurance fraud (www.techradar.com)

A recent analysis by Zurich, in collaboration with AI analytics firm Quantexa, reveals that AI technology is contributing to a significant increase in insurance fraud, with generative AI being used by organized crime rings to fabricate evidence for fake claims. The report indicates that AI is linked to 20% of fraudulent claims, allowing such schemes—ranging from staged accidents to repeat claimants—to escalate in sophistication and organization. Over the past year, Zurich identified approximately £17.9 million in fraudulent claims through advanced analytics. This development underscores a crucial shift in the insurance industry, where connected data and AI-driven insights are becoming essential tools for combating fraud. Scott Clayton, Head of Claims Fraud at Zurich UK, emphasizes the importance of integrating diverse data sources, such as Companies House and the Insurance Fraud Register, to expose hidden relationships and organized networks behind fraudulent activities. As the volume of detected fraud rose by 22%, the combination of technology and specialized human judgment is increasingly vital to protect honest customers and tackle this evolving threat effectively.