Category: General News
The world of business security looks nothing like it did just a few short years ago. If you feel like the goalposts for keeping your company safe are moving faster than ever, you aren’t alone. We’ve moved past the era of obvious phishing emails with poor grammar and suspicious attachments. Today, the threats are more sophisticated, harder to spot, and, quite frankly, a lot more personal.
At T&R Direct Insurance Services, we’ve seen how artificial intelligence has become a double-edged sword. While it’s helping us streamline commercial insurance and offer better service, it’s also being used by bad actors to industrialise fraud at a scale we’ve never seen before.
In 2025, AI-driven fraud surged by a staggering 1,210%. By the end of next year, projected losses are expected to reach over £32 billion globally. It’s a sobering thought, but understanding how these risks are evolving is the first step in making sure your policies and your business remain secure.
The new face of digital deception
Fraud has moved from opportunistic to industrialised. In the past, a fraudster might target one person at a time. Now, they use AI to launch thousands of highly personalised attacks simultaneously.
One of the most concerning developments is the rise of deepfakes. You might have seen these used for entertainment or on social media, but in a professional setting, they are becoming a dangerous tool for social engineering. We’ve seen cases where high-level executives are mimicked in video calls to authorise massive transfers of funds. In one notable instance, a firm lost over £20 million because an employee believed they were on a call with their CFO.
But it isn’t just video. Voice cloning has become so accurate that it’s nearly impossible to tell a computer-generated voice from a real one over a standard phone line. This makes "vishing" (voice phishing) a major concern for any business that handles sensitive financial instructions over the phone.
Why your old security habits might not be enough
For a long time, we relied on "anomaly detection." The idea was simple: if something looked out of the ordinary: like an email from an unusual IP address or a login at 3 AM: the system would flag it.
The problem is that modern AI is designed specifically to hide these anomalies. AI-generated phishing emails now achieve click-through rates more than four times higher than the ones humans used to write. Why? Because they don’t contain those "tell-tale" signs like spelling mistakes. They use the correct industry jargon, they reference real projects your company is working on, and they mimic your internal brand tone perfectly.
We are also seeing the rise of "synthetic identities." This is where fraudsters use AI to create entirely new personas that look like real customers or employees. They have credit histories, social media profiles, and realistic documentation. They can pass through onboarding checks with ease and behave like legitimate accounts for months before suddenly clearing out funds and disappearing.
The rise of AI liability policies
As these threats grow, the insurance industry is responding with specialised coverage. You are likely familiar with standard cyber insurance, but as we move further into 2026, AI liability policies are becoming a crucial part of a robust commercial insurance package.
These policies are designed to protect businesses from the unique risks that come with using (or being targeted by) AI. This includes:
- Deepfake Fraud Protection: Specific coverage for financial losses resulting from sophisticated audio or video impersonation.
- Algorithmic Bias Liability: Protection if your company’s own AI tools inadvertently discriminate or cause financial loss to others.
- Data Poisoning: Coverage for instances where your business AI is manipulated by external actors to give false results or leak data.
It’s worth checking your current coverage to see where the gaps might be. A standard policy written in 2023 might not fully account for a deepfake-driven social engineering attack in 2026.
Protecting your commercial interests
Whether you are managing a fleet of vehicles with commercial vehicle insurance or looking after a portfolio of properties, the digital security of your business is now inextricably linked to your physical assets.
For example, we are seeing hackers target smart building systems. If you have commercial property insurance, you need to ensure your digital security is as tight as the locks on your front door. A vulnerability in a smart thermostat or an automated lighting system could provide an entry point for a fraudster to access your company’s financial network.
The same applies to the motor industry. As vehicles become more connected, the risk of remote tampering or data theft increases. Whether you have HGV insurance or a simple van insurance policy, ensuring your fleet's software is updated is no longer just about performance: it’s about security.
Fighting AI with AI
It sounds like a Hollywood script, doesn’t it? But the reality is that the best way to defend against AI fraud is by using AI detection yourself. Over 90% of major financial institutions are now using AI to monitor transactions in real-time.
Instead of just looking for errors, these modern systems look at patterns. They can detect if a user’s typing speed changes, if their mouse movements seem "robotic," or if they are navigating a website in a way that suggests they are following a script rather than acting as a human would.
Practical steps to keep your policies secure
While the technology is complex, the steps you can take to stay safe are often quite practical. Here’s what we suggest for our clients at T&R Direct:
- Layer your security: Don’t rely on a single password or even a single form of biometric ID. Use multi-factor authentication that requires a physical token or a separate verification step.
- Verify via a second channel: If you receive a request for a large payment or a change in bank details: even if it’s via a video call: always verify it through a completely different method. Call the person back on a known, trusted number.
- Train your team: Your staff are your first line of defence. They need to know that deepfakes exist and that "perfect" emails can still be fraudulent.
- Review your URLs: Always ensure you are on the correct site. For example, when checking your security policy or looking for insurance articles, make sure the URL begins with the official
trdirect.co.ukdomain. - Collaborate with experts: Fraud moves fast. Working with a dedicated insurance partner means you have someone looking out for the latest trends and ensuring your commercial insurance keeps pace.
Looking ahead: Agentic AI and 2027
As we look toward the next year, the next big shift is "Agentic AI": systems that can act autonomously on your behalf. While this will be great for productivity (imagine an AI that can handle your claims automatically), it also introduces a new vector for fraud. We may soon see machines attempting to manipulate other machines, bypassing the "human in the loop" entirely.
This is why building a culture of verification is so important. We shouldn’t be afraid of these new technologies: after all, they offer incredible benefits for efficiency and growth: but we must approach them with a healthy dose of scepticism.
Final thoughts
The landscape of fraud in 2026 is certainly more complex than it used to be. The rise of AI has given fraudsters new tools to mimic reality, but it has also given us new ways to protect what matters most.
At T&R Direct Insurance Services, we believe that staying secure is a combination of the right technology and the right insurance coverage. Whether you are looking for landlord excess insurance or comprehensive car insurance, we are here to help you navigate these high-tech challenges.
If you are worried about whether your current business policies cover the latest AI-driven threats, why not get in touch? It’s always better to check your cover now than to find a gap in your protection later.
Stay safe out there: both in the real world and the digital one.
About The Author: Penny
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