Insurance fraud has recorded the steepest long-term rise of any sector in a new UK identity fraud study.
Cases surged 290.5% from 4,215 in 2017 to 16,461 in 2025, according to research from cyber security firm Inflection Point. The findings are based on Cifas data analysed across banking, insurance, telecommunications, and other sectors over eight years.
The scale of the increase stands out sharply against the wider trend. Total identity fraud across all sectors rose 38.7% over the same period, reaching 242,003 cases in 2025. Insurance now accounts for 6.8% of all UK identity fraud cases. It ranks fifth overall behind plastic card, bank account, communications, and online retail fraud.
The reason insurance has become such a fertile target is not difficult to understand. Iain Godding, founder of Inflection Point, said insurance applications and claims generate far more personal detail than most financial transactions.
“Insurance applications and claims involve a lot of personal information, from addresses and dates of birth to employment details, vehicle information and sometimes medical history,” he said.
This data depth gives criminals multiple options. Godding said stolen insurance details can be used to open policies, submit false claims, or assemble detailed identity profiles.
“Your name, address, phone number, date of birth or even details from an old policy can all be enough to help a fraudster impersonate you.”
The identity fraud figures sit within a broader and worsening picture for the sector. The Association of British Insurers (ABI) reported £1.16 billion in fraudulent general insurance claims detected in 2024, a 2% increase year on year. Fraud cases rose 12% to 98,400, with motor insurance accounting for 53% of all detected fraud that year.
At the individual insurer level, the numbers are striking. Aviva detected a record £233 million in fraud across more than 18,400 suspect claims in 2025. This is equivalent to more than £638,000 stopped every day.
AI-generated claims imagery and fraudulent applications are rising, with ghost broking accounting for a growing share of the total.
Identity fraud threat is also intensifying. Cifas recorded more than 444,000 cases in its National Fraud Database in 2025, the highest annual total ever, up 6% on 2024.
Claims management firm Sedgwick also flagged a sharp rise in AI-enabled synthetic identity fraud, with fabricated documentation increasingly used to support false insurance claims.
Godding said early detection remains the most effective response. Fraud typically surfaces first as something minor, such as an unfamiliar payment, a letter about an unknown account, or an unrequested policy change. The earlier a case is identified, the easier it is to contain.
He also warned against unsolicited contact. Professionals and policyholders should disengage from unexpected calls, texts, or emails requesting personal details. Any approach should be verified directly through a confirmed channel.
