London, England— AI technology is behind a 275 percent rise in bogus auto repair claims over the past four years, the U.K.-based insurance company Aviva has found.
According to a new report, there has been a 275 percent jump in false vehicle damage and rental claims since 2021.
The company says it stopped about 12,700 fraudulent claims in the U.K. in 2024 worth about £127 million ($230 million). This represents 14 percent over the previous year. Many of these fraudulent claims have been linked to the use of deceptive third-party accident management firms creating AI-generated fake invoices, says Aviva.
In such cases, British motorists who searched for accident assistance-related topics online clicked on spoof ads masquerading as legitimate insurer channels. In some cases, drivers who mistakenly clicked on these ads found themselves on the hook for thousands of pounds of fraudulent claims.
Earlier this year, Aviva Canada found there had been a similar increase in auto-related insurance fraud in Canada. In a report, it revealed it had conducted 76 percent more fraud investigations in 2024 than in the previous year.
Auto-related cases, valued at more than a billion dollars, accounted for more than 67 percent of all the investigated claims. In many cases, AI-generated reports were found to cause delays and disputes with auto repair facilities not believed to be involved in criminal schemes.
In a statement, Jamie Lee, head of financial crime and fraud at Aviva Canada, said this type of fraud: ". . . disrupts the repair process, creates friction between insurers and bodyshops and erodes trust across the industry."
He added that auto repair facilities can help by becoming aware of certain "red flags" that mark out fraudulent insurance documentation.
