Which of the following is a form of hard fraud?

Hard fraud involves the deliberate fabrication or staging of a loss in order to obtain an insurance payout. Faking a loss fits this definition perfectly, as it entails creating a false scenario or event that never actually occurred in order to deceive the insurance company for financial gain. This is a serious form of fraud that can lead to significant legal consequences and is a clear violation of insurance laws.

On the other hand, inflating a claim, exaggerating damages, and concealing prior damages, while still unethical and potentially fraudulent, typically fall into the category of soft fraud. Soft fraud involves the manipulation of existing facts rather than the creation of a fictitious event. In contrast, hard fraud's distinct quality is the complete falsification of a claim. Understanding these differences is crucial for recognizing various forms of insurance fraud and their implications.