Fraud fight on a knife edge as technology presents serious challenges

Two of the insurance industry’s leading fraud experts have warned the sector is losing the battle against criminals as the use of technology creates the ability for criminals to become ever more sophisticated.

Speaking at a session during the Insurance Innovators Summit in London, Scott Clayton, head of claims fraud at Zurich, and Gareth Davies, head of fraud at Allianz Global, said the battle against fraudsters was intensifying as they find new ways to cheat underwriters and their insureds.

For example, Clayton warned the days of the traditional staged road traffic accidents have been superseded by technology-driven organised gangs that are making huge claims without there ever having been a collision.

They will identify and target a specific company branded vehicle, access the vehicle’s company data, falsify documents and communicate with the insurers to make it look as if the victim had reported the accident.

They then falsify evidence of serious damage to a bogus vehicle, making claims for tens of thousands of pounds.

Clayton said: “You know organised fraud when you see it. The organised element has always been here. Technology is making the crash for cash fraud more sophisticated. They are now all paper based, there is no accident. They are stealing tens of thousands of pounds off the back of fraudulent data and they know the claims process and how it can be exploited.

“We have tried to follow the money, but we simply could not do it as there were barriers put in place.

“We know we are not the only insurer to have received such claims from these organisations.”

’Frauadsters becoming strategic’

Meanwhile, Allianz’s Davies said it was difficult to highlight a specific trend or threat when it comes to fraud.

In September 2025, the insurer revealed that it detected more than 15,800 instances of attempted insurance fraud worth £92.6m in the first half of 2025 in the UK.

The figures, which cover the firm’s personal, commercial and specialty lines, amounted to a 34% growth since the same period last year, when scam claims were valued at £68.9m.

“We are seeing fraudsters becoming more strategic,” Davies said.

”They are being supported by third parities such as lawyers and employees who are happy to sell their knowledge.

“I am spending ever more time with my legal and compliance teams, as these frauds are increasingly linked to broader criminal issues such as money laundering and the evasion of sanctions.

“We have never truly been ahead of the fraudsters, but in the past our systems were such that we could in effect outclass them.

“However, we are now in a very different situation with the arrival of technology. As a business and an industry for new systems such as artificial intelligence, we will take a sensible approach to its implementation and its use. The criminals have no such concerns. If the technology is there, they will use it.

“It has created a growing disparity in the rules of engagement. If there were rules, the fraudsters are no longer playing by them.”