AI-driven cyber fraud claims rise 57% at Travelers as tactics shift

Cybercriminals are shifting from traditional ransomware and data breaches to more sophisticated fraud and business email compromise (BEC), according to executives at the NetDiligence Cyber Risk Summit. Christine Mapes of Travelers said that about 50% of the insurer’s cyber claims now involve financial fraud or BEC, with a 57% increase in such claims from the first half of 2025 to the first half of 2026. Claim severity has also risen by about 30% since 2023.

Tactics have evolved: attackers now use IT and bank fraud manipulation, often convincing victims to hand over access voluntarily. Artificial intelligence is fuelling this trend, enabling criminals to bypass language barriers and improve impersonation, according to Integreon’s Blake Feldman and Westfield Specialty’s Sara Trokan. Fraudsters increasingly combine email, audio, video, and social media to create convincing scams, sometimes tricking staff into making large payments.

While AI is also used to strengthen cyber defences, the panel agreed that basic verification processes remain effective. Lindsay Nickle of Constangy suggested that raising awareness and using low-tech checks, as was done with social engineering threats in the past, is still necessary.

Insurers and regulated firms should review their fraud controls and staff training as AI changes the threat profile. Monitoring new fraud trends and reinforcing verification procedures will be important as attackers adapt.