Insurance giant Aviva has revealed that it prevented more than £127 million worth of fraudulent claims in 2024, marking a 14% increase in the number of detected bogus claims compared with the previous year.
The company said it identified over 12,700 suspicious claims last year – an average of around 35 per day – as economic pressures continue to push some individuals toward fraud. This rise follows a 39% annual surge in detected fraud in 2023, signalling a worrying upward trend in deceitful behaviour within the insurance sector.
Motor-related insurance fraud remains the most significant issue, accounting for three out of every four bogus claims flagged by the insurer. While the prevalence of “crash for cash” style personal injury scams appears to be declining, Aviva noted a rise in exaggerated injury claims and inflated repair and hire costs.
“There’s been a shift away from deliberate, orchestrated injury fraud towards more opportunistic exaggerations,” a spokesperson explained. “Fraudsters are attempting to push up the cost of legitimate claims, particularly in areas like vehicle repairs, car hire, and minor injuries.”
A growing concern for Aviva is the emergence of misleading online adverts, or “spoof ads”. These target individuals seeking contact details for their insurers after an accident, but instead direct them to claims management companies masquerading as insurers. Victims often proceed with claims through these firms, unaware they’re not dealing with their insurance provider, which can complicate or inflate the process.
Beyond motor insurance, fabricated and exaggerated claims for household items make up around one in 10 fraudulent claims detected. This trend, according to Aviva, is largely opportunistic, with the cost-of-living crisis likely playing a role. Common items falsely reported or inflated in value include mobile phones, televisions, laptops, tablets, watches, and jewellery.
Aviva also reported a sharp rise in fraudulent commercial claims. Exaggerated escape of water incidents in commercial properties and inflated commercial motor claims contributed significantly to the increase. The company said exaggerated costs were the leading driver behind the surge across both property and motor policies.
Insurance applications fraud has also seen a marked increase. Aviva flagged over 98,000 applications as fraudulent in 2024 – a 92% rise compared to the previous year. A notable portion of these were linked to ghost brokers – fraudsters posing as legitimate insurance brokers who sell invalid policies with altered information to reduce premiums. Students and young drivers are often the main targets.
In response, Aviva said it has bolstered its defences at the quote and application stage, including enhancing data analytics and staff training. It is also working closely with police and fraud prevention agencies to crack down on criminal operations and safeguard genuine customers.
Pete Ward, Aviva’s Head of Claims Counter Fraud, stated: “The overwhelming majority of our customers are honest, and we are committed to settling their claims quickly and fairly. But where we detect insurance fraud, we have a responsibility to protect our customers from its harmful effects and the additional costs it brings.”
Mr Ward also pointed to “a backdrop of ongoing economic hardship” as a contributing factor to the surge in fraud. “While the cost-of-living crisis doesn’t excuse fraud, it does help explain why we’re seeing more people taking risks by inflating or fabricating claims.”
Aviva reaffirmed its commitment to staying ahead of the fraud curve through technology, training, and collaboration with enforcement agencies – ensuring that honest customers are not penalised for the actions of the few.