Why we invested in Veridox

We’re pleased to announce our investment in Veridox, a new AI-powered fraud detection platform that uses explainable AI to help insurers, TPAs, and investigation firms identify forged or manipulated documents and images at scale. Outward led the £1M funding round.

In an age where generative AI makes fraud easier, faster, and harder to detect, Veridox is building the technical shield. Starting in insurance, its forensic engine not only flags suspicious files but also explains how and why they’re problematic – offering actionable evidence, not just risk scores.

Fraud is a billion-pound problem for the UK insurance industry (and that’s only the fraud that gets detected). In the US, it runs into the hundreds of billions.

While fraud has become more sophisticated through AI-generated documents, manipulated images, even faked metadata – most fraud detection tools remain stuck in the past: still relying on basic rules engines, flag lists, and manual reviews.

This gap mirrors other industries: a critical function lagging behind in functionality is suddenly being outpaced by the threat it’s designed to manage.

Veridox offers a step change. Its platform analyses files deeply and in context – layering forensic file analysis with case-specific logic. It surfaces inconsistencies, detects tampering, and is built to be explainable – putting together an evidence base clients can actually use.

Veridox was founded by Dan Sandler, a former lawyer and repeat entrepreneur with a track record of building quickly, getting to revenue early, and solving real-world problems with pragmatic focus.

The idea for Veridox emerged from Dan’s personal experience. After successfully exiting his last venture in hospitality, he dipped his toes into the vehicle rental market, and what became an experiment quickly turned him into one of the UK’s largest car rental hosts on platforms like Turo and Karshare. After repeatedly encountering suspect claims and flawed processes, he started building fraud detection tools – first for himself, and later for insurers.

That combination of scrappiness, industry insight, and execution is what drew us in. Dan has already signed early customers, built a lean but impressive tech stack, and recruited high-quality AI talent – all within a year, and with very little resource.

Veridox is initially targeting insurers, investigation firms, and legal specialists—segments where fraud detection is still manual and margins most vulnerable.

But the vision goes beyond: becoming the go-to layer of AI-driven fraud intelligence across claims management systems, legal discovery platforms, and underwriting workflows. In time, Veridox aims to become the connective tissue that powers document trust across insurance and beyond.

It’s also clear the incumbents aren’t innovating at the pace at which fraud is evolving. We see Veridox not just as a challenger, but potentially the next foundational layer in how fraud gets tackled in an AI-native world.

We’re proud to lead Veridox’s round and support Dan in his next chapter. We believe AI isn’t just a threat vector – it’s also the best form of defence.

With its explainable AI platform, Veridox is building a powerful advantage in the fight against fraud.Fraud detection has never mattered more, and we think Veridox has the potential to lead the category.