Artificial intelligence is increasingly used to doctor photos and exaggerate insurance claims, according to Admiral Group.

The UK insurer says claims for damage to designer watches and shoes are common. Recent cases also include a car being given a different number plate to claim twice, and internet photos of damaged luggage being submitted in a claim.

Admiral detected a 71% rise in in fraudulent motor, home and travel claims last year, totalling £86.8 million ($163.8 million).

“While a lot of these images are amateurish, AI is increasingly being used to create more realistic photos for exaggerated insurance claims. Many don’t realise that exaggerating claims is a type of fraud and the serious consequences,” the insurer said.

Other examples have included extreme sport injuries being presented as walking accidents, and claims for winter ski jackets during summer holidays. In one case, dashcam footage revealed a claim for injuries following a car accident to be fake. No one was in the car at the time.

Admiral fake phone claims match new iPhone edition releases, and claims for TVs peak near the soccer World Cup and new Disney+ productions.

An Admiral poll found 13% of people admitted inflating an insurance claim, and one-quarter were tempted to do so.

Only 19% said fear of legal consequences would discourage them most – even though exaggerating claims risks criminal prosecution.

“Many underestimate the real-world repercussions of minor embellishments,” Admiral said.