Growing Threat From AI Food Fraud

By Annabel Kyle and Alasdair Dean

Businesses are facing a new wave of fraud driven by artificial intelligence, with customers increasingly using AI-generated images and legally framed complaints to secure refunds and compensation.

Here at Food Alert, we’re seeing live cases across the United Kingdom involving manipulated food images designed to depict mold, undercooked meat and foreign objects that were never present in the original meal, creating growing financial and reputational risks for operators already under pressure from rising costs.

AI-generated content is increasingly widespread online. With more than 34 million AI-generated images now reportedly produced every day and 71% of social media content estimated to be AI-generated, food businesses are becoming vulnerable to a new form of “AI food fraud.”

The issue is exacerbated by how many third-party delivery platforms handle complaints, with refunds often processed automatically before costs are passed directly onto retailers.

The problem is becoming a day-to-day challenge for retailers.

There have been instances where we’ve seen AI manipulation of images relating to foreign bodies or undercooked food complaints. We do think this is likely to increase, and we are aware that third-party aggregators reportedly receive a lot of suspicious complaints of this nature.

Identifying fake complaints is becoming increasingly difficult as AI technology advances.

We’ve identified two key emerging threats facing operators: fabricated photographic evidence and AI-written intimidation tactics.

Customers are increasingly using AI tools to generate convincing complaint emails that include legal terminology and references to enforcement authorities, in an attempt to pressure businesses into issuing refunds.

A bigger trend we see is the use of AI to intimidate our food business clients in relation to food complaints.

For example, if a guest disagrees with the outcome of their complaint, we will often receive an email that is clearly written with AI, quoting legislation and stating they will be reporting the matter to enforcement authorities, government agencies, legal representatives, and so on.

Fraudulent complaints escalated to local authority Environmental Health Officer (EHO) departments, whether through AI-generated images or intimidatory written correspondence, can trigger inspections. Even where the original complaint is fabricated, an inspection may uncover unrelated issues, creating real regulatory exposure. Repeated complaints on record can also, over time, affect a business’s food hygiene rating.

Our own research found that 84% of local councils across England, Wales and Northern Ireland charge businesses for a food hygiene re-rating, with the average cost totaling £219.95 ($295).

Identifying fake complaints is becoming increasingly difficult as AI technology advances rapidly.
At the moment, email and written complaints are relatively easy to identify, as AI language is currently fairly easy to distinguish. However, this is likely to change over time. Images are harder to spot and, while there are clues to look for, they are trickier to see. Again, these will become harder and harder to identify over time, and relatively rapidly.

Current U.K. legislation does not cover AI-generated food complaint fraud, leaving businesses exposed while regulation struggles to keep pace with the technology. In the U.K., there is currently nothing that governs the generation of images outside the intentional generation of sexually explicit images. This also means other people might see and hear of this type of fraud and the lack of legislation around it, and carry it out for themselves.

We urge businesses to strengthen complaint investigation procedures, maintain robust food safety documentation and work closely with delivery platforms to challenge suspicious refund claims more effectively.

Businesses should continue treating every complaint seriously to avoid overlooking genuine food safety risks while remaining alert to signs of AI manipulation.

Food Alert is a leading food safety, health & safety and compliance consultancy supporting businesses across the hospitality, foodservice, leisure, retail and manufacturing sectors. The company provides expert technical advice, auditing, training and compliance solutions. The full report can be found at www.foodalert.com/blogs-resources/ai-food-fraud.

Annabel Kyle is a food safety and compliance expert with over 20 years of experience, focusing on compliance, interpreting legislation and guidance, updating and creating policies and procedures for clients, supporting clients with EHO appeals and serving as the technical voice of Food Alert. Alasdair Dean is Food Alert’s AI lead and a food and health and safety professional, running Food Alert’s food complaints program.