Hard Vs. Soft Fraud
Insurance fraud can be classified as either hard fraud or soft fraud.
Hard fraud occurs when someone deliberately plans or invents a loss, such as a collision, auto theft, or fire that is covered by their insurance policy in order to receive payment for damages. Criminal rings are sometimes involved in hard fraud schemes that can steal millions of dollars.
Soft fraud, which is far more common than hard fraud, is sometimes also referred to as opportunistic fraud. This type of fraud consists of policyholders exaggerating otherwise legitimate claims. For example, when involved in a collision an insured person might claim more damage than was really done to his or her car. Soft fraud can also occur when, while obtaining a new insurance policy, an individual misreports previous or existing conditions in order to obtain a lower premium on their insurance policy.
Read more about this topic: Insurance Fraud
Famous quotes containing the words hard, soft and/or fraud:
“If you would avoid uncleanness, and all the sins, work earnestly, though it be at cleaning a stable. Nature is hard to be overcome, but she must be overcome.”
—Henry David Thoreau (1817–1862)
“Since time immemorial, one the dry earth, scraped to the bone, of this immeasurable country, a few men travelled ceaselessly, they owned nothing, but they served no one, free and wretched lords in a strange kingdom. Janine did not know why this idea filled her with a sadness so soft and so vast that she closed her eyes. She only knew that this kingdom, which had always been promised to her would never be her, never again, except at this moment.”
—Albert Camus 1013–1960, French-Algerian novelist, dramatist, philosopher. Janine in Algeria, in The Fall, p. 27, Gallimard (9157)
“He saw, he wish’d, and to the prize aspir’d.
Resolv’d to win, he meditates the way,
By force to ravish, or by fraud betray;
For when success a lover’s toil attends,
Few ask, if fraud or force attain’d his ends.”
—Alexander Pope (1688–1744)