Generative AI is now being used to fabricate property damage in photographs, creating new risks for landlords who rely on images from tenants or agents to assess their properties remotely.

Research from a data analytics firm warns that fraudsters and organised crime groups are already using AI tools to deceive insurers – and the same techniques could be used against landlords managing properties at a distance.

Small edits have big impact as the study found that so-called ‘vanilla synthetics’ – small AI manipulations rather than fully generated images – are especially dangerous. These subtle edits often pass unnoticed by the human eye and can be extremely difficult for investigators to uncover.

A spokesperson for the firm said: “Fraudsters are exploiting generative AI tools to make fabricated damage and doctored scenes look entirely plausible. With just a few prompts, they can create, enhance or erase visual evidence to support a false insurance claim.”

Rising fraud is already hitting consumers, with the Insurance Fraud Register estimating that dishonest claims have added an average £50 to annual premiums. For landlords, the risks stretch further: manipulated images could be used to bolster deposit disputes, inflate repair costs, or support disrepair allegations, creating a new layer of vulnerability for anyone relying on photographic evidence.

This comes after a February warning about tenants using bank-fraud chargebacks to sidestep deposit protections — a separate trend that has already forced many landlords onto the back foot.

Tests carried out by the data analytics firm showed how easily people can be misled: when members of the public were shown doctored images, 40 per cent failed to spot the fakes. The firm is urging landlords and property professionals to watch for the small visual cues that often betray AI manipulation which include:

• Shadows falling in an illogical direction

• Damage that doesn’t match the supposed cause

• Blurred number plates or registration details

• Backgrounds that look unnaturally clean or empty

These inconsistencies are often the earliest signs that an image has been generated or altered with AI.

For landlords handling deposit disputes or remote inspections, the findings underline the value of detailed inventories and independent check-ins. And while AI is creating new avenues for fraud, insurers are increasingly using the same technology to flag anomalies and strengthen their own detection systems.