A Manchester tech firm aiming to tackle the “monumental” multi billion-pound cost of insurance fraud has raised £1m in a funding round.
Veridox raised the money in a round led by Outward VC and with participation from Solo Investments Holdings, the investment firm launched by LBG Media founder Solly Solomou.
Veridox was founded by former entrepreneur Dan Sandler, who previously co-founded order and pay app Tabb. He and former Tabb co-founder, Joey Clover, now CTO at Veridox, now manage a team of 13 employees.
The company is launching what it calls an “AI-powered forensic document and image manipulation analysis platform” to instantly analyse documents submitted as part of insurance claims and to identify any potential signs of fraud.
Veridox was named in this year. It is currently working with 15 insurers as development partners.
The some £1.1bn of fraudulent claims were detected in the Ƶ alone, up 4% on 2022.
Dan Sandler, founder of Veridox, said: “Document and image fraud is no new challenge for insurers; we can only estimate what the real cost of it is because so many successful fraudulent claims naturally go undetected. What we do know is that AI is enabling even ‘novices’ to produce more convincing fakes, which typically require intensive manual analysis by fraud investigators to uncover.
“Our mission is to help insurers make more informed decisions on fraud faster, which we do by offering reasoning behind why a document presents a risk of fraud to guide their investigation. This explainability sets us apart, and our development partners are already seeing the benefits. So, we look forward to using our funding to bring the Veridox platform to the general market.”
Sanchit Dhote, principal at Outward VC, said: “When facing such a monumental challenge as insurance fraud in the AI era, Veridox has the potential not just to reshape its market, but to set a new standard in fraud detection. Its early traction with tier one insurers and law firms shows just how urgently the industry needs tools that actually help investigators detect and stop fraud.
"By investing in Veridox, we’re proud to back a new generation of practical, intelligent fraud defence, helping the industry recover billions in avoidable losses.”
