Insurance fraud in Europe is estimated to cost insurers around £13 billion every year. However, most insurance companies only know how much fraud they have caught, not the full extent of their losses.
Based in Manchester, Veridox was founded by Dan Sandler and his longtime colleague Joey Clover, who believe a large portion of fraudulent claims go undetected. Sandler, a former solicitor and serial entrepreneur, previously launched and sold Tabb, a popular order-and-pay app for bars and restaurants. He was also recently honoured as Tech Nation’s Rising Star for the North of England.
Sandler told TFN, “Before Veridox, I ran a different business — a vehicle damage app with a large user base but no clear revenue model. At the time, I read about the 300% rise in motor insurance fraud claims due to AI manipulation. I spoke with an underwriter at a major insurer who confirmed they needed help fighting fraud. I thought my existing app might assist, but it wasn’t the right fit. After the fifth insurer came to me looking for a solution, I couldn’t stop thinking about it. I spent a month exploring how to tackle the problem and built a minimum viable product (MVP) in two weeks.
When a $3 billion insurer asked to pay for and test that MVP — even though it didn’t work perfectly — I realised I had to develop a usable product. Then in December 2024, the same insurer tested the updated version and identified £50,000 worth of fraud in under five seconds. That’s when I decided to go all-in on Veridox.”
Veridox has developed a new AI-driven platform that identifies manipulated documents and images with forensic precision. The company recently secured £1 million in seed funding to prepare its technology for wider market release.
This funding round was led by Outward VC, with contributions from Solo Investments Holdings Limited, the investment company founded by media entrepreneur Solly Solomou. With its new capital, Veridox plans to accelerate product development and expand its sales efforts.
Currently, Veridox works closely with 15 leading UK insurers as development partners and plans to grow its 13-person team to support a general launch later this year. The company is proud of its diverse workforce, with 30% of the team from BAME backgrounds.
The product: more than “red flags”
Many fraud detection tools today alert insurers to suspicious documents, but don’t explain exactly what has been altered or why it matters. Veridox’s platform takes a different approach by providing clear, contextual explanations about the type of manipulation detected. For example, it can distinguish between harmless modifications, such as added signatures and deliberate fraud, like doctored claim amounts.
Dan elaborated on the technology: “Veridox’s cutting-edge AI models enable industry-first techniques for analysing every aspect of a claim’s documentation. It instantly detects instances of potential manipulation … Unlike other document fraud detection platforms, Veridox offers more than just ‘red flags.’ It provides contextual analysis with reasoning”
He added, “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.”
The platform conducts a detailed forensic analysis of claim documents that would traditionally take manual investigators many hours to complete. In a pilot with a $3 billion insurer, Veridox’s MVP uncovered £50,000 of fraudulent activity within seconds. The AI-generated reports comply with UK Civil Procedure Rule 35, ensuring they can be used as evidence in court.
An emerging market with strong demand
While there are other companies offering fraud detection solutions, most rely on pattern recognition or anomaly detection. Firms like Experian and LexisNexis Risk Solutions, as well as AI-focused players such as Quantexa and FICO, provide robust analytics platforms that identify suspicious activity based largely on data patterns. Although powerful, these approaches can generate a high volume of false positives, which slows down investigators and burdens claims teams.
Veridox’s forensic, explainable AI fills a gap by delivering clear, contextual insights that explain what manipulation has occurred and why. This enables insurers to focus their investigations more efficiently on high-risk cases and take stronger legal action when fraud is detected.
Sanchit Dhote, Principal at Outward VC, says, “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.”
