Veridox secures £1M to launch AI forensic fraud detection for insurers

Based in Manchester, the startup provides court-ready fraud insights for insurers beyond basic “red flags.”
Veridox secures £1M to launch AI forensic fraud detection for insurers

Veridox, an AI-powered platform for detecting document and image manipulation in insurance claims, has raised £1 million. The round was led by Outward VC with participation from Solo Investments Holdings Limited.

Fraudulent insurance claims in Europe are estimated at around €13 billion a year, nearly 10 per cent of payouts, yet most insurers can quantify only what they’ve detected, not their total exposure.

Veridox was founded by Dan Sandler, a former solicitor and serial entrepreneur who previously co-founded and exited Tabb (an order-and-pay app for hospitality), to address this gap. The company helps insurers move beyond manual, fragmented fraud detection by delivering AI-driven, litigation-ready insights on document and image tampering.

Veridox’s platform forensically analyses claim files to flag potential manipulation that would otherwise be difficult or time-consuming to uncover. In an early pilot with a large insurer, the MVP identified approximately £50,000 of suspected fraud in a single case within seconds.

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,

commented Dan Sandler.

Unlike tools that surface only generic “red flags,” Veridox provides contextual findings with clear rationale, what was detected, why it matters, and where to look next, helping investigators distinguish benign edits (such as adding a signature) from manipulations with malicious intent. This level of explainability also supports the preparation of CPR 35 reports to meet compliance and evidentiary standards.

The new funding will support team expansion, with a focus on product and sales, ahead of a broader market launch.

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