- AI-related insurance fraud cases have nearly tripled in two years, with scammers using fake receipts, doctored medical documents, AI-generated damage photos, deepfake videos and forged IDs.
- Oklahoma Insurance Commissioner Glen Mulready warned that AI-generated fake receipts now account for 34% of fraud cases, followed by doctored medical documents at 28% and AI-generated damage photos at 19%.
- Mulready said AI-driven fraud contributes to more than $308 bn in annual losses, pushing insurers to use stronger detection tools and step up enforcement.
Insurance fraud cases involving artificial intelligence have nearly tripled over the past two years, according to a recent report, raising concern among regulators and insurers.
Oklahoma Insurance Commissioner Glen Mulready warned that scammers are using AI tools to build more convincing support for fraudulent insurance claims. He said the same technology built to make daily tasks easier is now helping fraudsters fabricate receipts, medical records, damage photos, videos and IDs.
Citing data from the report Was It AI Generated, Mulready said fake AI-generated receipts now account for 34% of fraud cases. Doctored medical documents make up 28%.
AI-generated photos of property damage represent 19%, while deepfake video evidence accounts for 12%. Forged identity documents contribute 7%.
“All of this is used by scammers to create convincing evidence for their insurance claims,” Mulready said.
He added that insurance fraud leads to more than $308 bn in annual losses. The cost does not stay with insurers alone. According to Mulready, fraud pressure feeds into higher premiums and leaves some people exposed to direct financial loss when scams reach consumers.
Policyholders to treat unexpected messages from anyone claiming to represent an insurer with caution. He advised consumers to verify documents, keep original receipts and records, and avoid altering claim photos, since edits might trigger fraud alerts during review.
The warning also points to a tougher operating environment for insurers. AI tools lower the cost of producing fake evidence, and the output looks more credible than older fraud attempts.
A fabricated receipt or edited medical form no longer looks sloppy by default. It looks clean, routine, almost boring. That’s the problem.
Mulready said insurers are responding with stronger detection technology and more enforcement activity. The industry’s task now is simple to state and harder to run at scale: separate legitimate claims from AI-assisted fraud without punishing honest policyholders.
