The White Lie Effect: 1 in 8 admit exaggerating insurance claims as untruths and AI edits surge

Insurance fraud in the UK is on the rise, and it’s not just organised criminals driving the trend. New data from Admiral reveals a sharp increase in detected fraudulent claims last year, with every day “white lies” and AI-manipulated images and documents contributing to the surge.  

In 2025 alone, Admiral detected £86.8 million in fraudulent claims, up 71% from £50.9 million in 2024 – a rise linked to people exaggerating their insurance claims, and Admiral improving detection methods to better protect customers. Many don’t realise that exaggerated claims are fraudulent, the serious consequences they can lead to or the impact they have on honest customers.  

From exaggeration to AI manipulation 

A commonly detected type of fraud Admiral sees is the digital manipulation of images, - with manipulated images of stolen or damaged items and fabricated documents being submitted on a regular basis. While a lot of these images are amateurish, claims handlers at Admiral say AI is increasingly being used to exaggerate insurance claims.  

Recent AI-doctored or digitally altered claims include: 

More conventional exaggeration tactics are also commonplace. In one case, dashcam footage captures an individual attempting to claim for their own injuries and those of their mother following a minor car accident involving an Admiral customer - despite no one being in the car at the time. After reviewing the video footage and medical notes, Admiral was able to reject the fake claim and protect its customer. 

Other examples include faked damage to designer shoes, extreme sport injuries presented as walking accidents, and even claims for winter ski jackets on summer holidays – all of which were detected and rejected.

Scoring a new TV 

Alongside AI-altered pictures and documents, Admiral’s data shows seasonal and cultural trends, with fake claims for televisions, gadgets, and other electronics spiking around major sporting tournaments, TV and film releases, and new tech drops. This includes phone claim spikes around new launch of a new iPhone, and claims for TVs around the World Cup and new Disney+ releases.

Minor embellishments, major fallout 

According to new national research survey by Admiral, one in eight people (13%) admitted to inflating an insurance claim, while a quarter (25%) have been tempted to do so to claim more money.  

Anyone exaggerating their claims risks having their entire claim rejected, their policy cancelled and even potential criminal prosecution. Yet only 19% cited fear of legal consequences as what would discourage them most from exaggerating a claim, showing many underestimate the real-world repercussions of minor embellishments. In fact, 27% don’t realise what constitutes insurance fraud – and believe that things like exaggerating an insurance claim or making a claim based on false information is not illegal. Meanwhile, over a quarter (27%) think that insurance fraud doesn’t impact them, with a similar number saying that it’s a victimless crime (24%).  

More fraud? Or smarter detection? 

Insurers are responding with sophisticated detection methods. Industry-wide, the Association of British Insurers reported £1.16 billion in fraudulent general insurance claims detected in 2024, illustrating both the scale of the problem and the growing capacity to tackle it. Advanced analytics, combined with collaboration with the Insurance Fraud Enforcement Department (IFED) and the Insurance Fraud Bureau (IFB), are enabling insurers to identify fraud with greater accuracy. 

Sian Davies, Head of Financial Crime Prevention at Admiral, said: “We understand that some people see small exaggerations as harmless. But even minor ‘white lies’ can lead to cancelled policies, difficulties getting cover in future and, in serious cases, prosecution.