What does hard fraud typically involve?

Hard fraud refers to the deliberate act of falsifying claims with the full intent to deceive an insurance company for financial gain. This type of fraud is characterized by the intentional creation of a fraudulent situation, such as staging an accident or inflating the severity of damages. The individuals who engage in hard fraud operate with a clear purpose and design, knowing that their actions are unlawful and aimed at gaming the system for unjust benefits.

This concept is distinct from other forms of insurance fraud, such as minor embellishments or unintentional misstatements, which do not carry the same level of intent. Hard fraud is a serious offense and known for significantly impacting insurance premiums and overall costs in the insurance industry, as it undermines the integrity of genuine claims and the trust between insurers and policyholders.