What is the main objective of soft fraud?

The main objective of soft fraud is to inflate the value of a legitimate claim. Soft fraud typically involves a situation where the policyholder exaggerates the extent of their damages or the circumstances surrounding their claim, making it seem more serious than it actually is. This could involve claiming additional injuries, having a higher repair cost than necessary, or presenting falsified evidence to support a legitimate accident or damage.

The essence of soft fraud lies in leveraging real situations to gain a financial advantage, rather than fabricating incidents completely, which is more characteristic of hard fraud. By focusing on inflating the value of an otherwise valid claim, the individual aims to obtain a greater settlement from the insurance company. This affects not only the insurance provider but can also lead to higher premiums for all policyholders as the costs of fraud are often passed on to consumers.