Hospitality 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, according to food safety and compliance experts Food Alert.

The company says it is already seeing live cases across the UK involving manipulated food images designed to depict mould, 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. 

The warning comes as AI-generated content becomes 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 Alert says 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 restaurants and takeaways.

Food Alert’s advisory team says the problem is now becoming a day-to-day challenge for hospitality operators.

Alasdair Dean, AI Lead at Food Alert, said: “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.”

The business has identified two key emerging threats facing operators: fabricated photographic evidence and AI-written intimidation tactics.

According to Food Alert, 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 for us is the use of AI to intimidate our food business clients and us in relation to food complaints,” said Annabel Kyle, Technical Director at Food Alert.

“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.”

Food Alert warns that even fraudulent complaints can trigger formal Environmental Health Officer inspections, potentially exposing unrelated compliance issues and affecting food hygiene ratings.

Kyle said: “Fraudulent complaints escalated to local authority 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.”

The consultancy’s 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 totalling £219.95.

Food Alert also warned that 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, as 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,” Dean added.

Food Alert says current UK legislation does not cover AI-generated food complaint fraud, leaving businesses exposed while regulation struggles to keep pace with the technology.

Kyle explained: “In the UK, 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.”

Food Alert is urging hospitality businesses to strengthen complaint investigation procedures, maintain robust food safety documentation and work closely with delivery platforms to challenge suspicious refund claims more effectively.

The business also added that businesses should continue treating every complaint seriously to avoid overlooking genuine food safety risks while remaining alert to signs of AI manipulation.

The full report can be found here.