Insurtech startup raises £1m to launch AI-powered forensic fraud detection

Manchester-based insurtech startup Veridox has successfully raised £1m to launch a new AI-powered forensic document and image manipulation analysis platform for insurers. 

The offering instantly detects instances of potential manipulation that either would not be possible, or would take extensive manual investigation to uncover. For example, in the company’s first meeting with a $3bn insurer, its minimum viable product identified £50,000 of fraud in a single case within seconds. 

Veridox provides contextual analysis with reasoning to inform investigators that there is a risk of fraud, as well as what it has detected and why it requires further investigation.

This increases the speed of their investigation to help insurers weed out legitimate forms of manipulation, such as the addition of a signature to a document, from those with malicious intent.   

Dan Sandler, founder of Veridox, said: “Document and image fraud is no new challenge for insurers – we can only estimate what the real cost of it is because so many successful fraudulent claims naturally go undetected.

”What we do know is that AI is enabling even ’novices’ to produce more convincing fakes which typically require intensive manual analysis by fraud investigators to uncover. Our mission is to help insurers make more informed decisions on fraud faster, which we do by offering reasoning behind why a document presents a risk of fraud to guide their investigation.

”This explainability sets us apart and our development partners are already seeing the benefits. We look forward to using our funding to bring the Veridox platform to the general market.”

A ‘proud’ investment 

The funding raised was led by the investment company of LBG Media founder Solly Solomou Outward VC alongside participation from Solo Investments Holdings. 

Sanchit Dhote, principal at Outward VC, said: “When facing such a monumental challenge as insurance fraud in the AI era, Veridox has the potential not just to reshape its market but to set a new standard in fraud detection.

“Its early traction with tier one insurers and law firms shows just how urgently the industry needs tools that actually help investigators detect and stop fraud. By investing in Veridox, we’re proud to back a new generation of practical, intelligent fraud defence, helping the industry recover billions in avoidable losses.”