The UK insurance industry is facing a crisis: an "unprecedented rise" in AI-driven fraudulent claims is overwhelming outdated systems, costing insurers millions and eroding revenues. The average cost of a detected fake claim has reached a staggering £84,000, according to a recent fintech report, underscoring the high-value nature of these attacks.

This surge is not simply a matter of opportunistic crime; it is proof that sophisticated AI tools are being deployed at scale to create flawless deepfake evidence—manipulated images, forged documents, and falsified reports—that bypass traditional, manual claims processing.

Conflict International specialises in providing the Forensic Investigation and Digital Forensics necessary to combat this integrated threat. We give insurers, legal counsel, and corporations the expert intelligence required to verify authenticity, deny fraudulent payouts, and secure assets.

1. The Financial Crisis: Legacy Systems vs. AI

The heart of the insurance industry's vulnerability lies in its reliance on outdated infrastructure and slow processing.

The Technology Gap: Over half of insurers admit their legacy payment infrastructure limits fraud detection. Furthermore, 52 per cent rely heavily on manual claims processing, making them incapable of dealing with the volume and sophistication of AI-generated attacks.
The Cyber Surge: The attack surface is expanding beyond traditional fraud. Figures from the Association of British Insurers (ABI) show that cyber insurance claims in the UK surged to £197 million in 2024, a 230 per cent increase from the previous year. This confirms that sophisticated, digitally-fuelled attacks are now the norm.
The Reputational Risk: Delays in digitalising large markets, such as Lloyd's of London's Blueprint Two strategy, slow down payouts and frustrate customers, adding pressure on insurers to accelerate processes even when facing suspected fraud.

2. The Conflict International Solution: Forensic Authenticity

When a deepfake claim or a suspicious policy entry is flagged, a dedicated forensic team is required to analyse the digital evidence and attribute the source. Conflict International's expertise operates where machine learning models reach their limits.

Fraud Investigation & Digital Forensics

Our focus is on legally verifying the authenticity of all evidence presented in a high-value claim:

Deepfake Verification: We use advanced digital forensics to analyse metadata, image compression, and pixel inconsistencies in photographs and documents (e.g. invoices, medical reports) submitted as evidence, determining if they have been digitally augmented or fabricated using AI tools.
Attribution & Network Tracing: We investigate fraudulent claims to identify the organised criminal rings operating behind them, providing actionable intelligence on their methods, networks, and associated entities.
Source Investigation: We link digital identities to real-world individuals and corporate structures, a process essential for building a criminal or civil case against the perpetrators of sophisticated fraud.

Litigation Support & Recovery

We bridge the gap between technical discovery and legal action, supporting insurers and corporate legal teams to protect their bottom line:

Evidence Collection: We compile comprehensive, court-admissible evidence packages, ensuring the chain of custody is maintained for all forensic data used to deny a claim or pursue recovery.
Litigation Support: We provide expert witness reports and support legal counsel in pursuing civil claims to recover losses from fraudulent payouts, enforcing freezing orders against assets acquired with stolen funds.

Contact Conflict International

The scale of the AI-driven threat demands a proactive, specialist response. Conflict International partners with the insurance and financial sectors to fight the sophisticated fraud that traditional systems miss.

To conduct a forensic audit of a suspicious claim, investigate a sophisticated fraud network, or bolster your organisation's defence against deepfake fraud, contact our investigation experts today.

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