The other driver's action of reversing into Mike's car is an example of which type of fraud?

The scenario described, where the other driver reverses into Mike's car, is an example of hard fraud. Hard fraud typically involves deliberate and intentional actions taken to deceive an insurance company for financial gain. In this case, the act of reversing into another vehicle is a calculated move that suggests intent to create a false claim scenario, which falls squarely within the realm of hard fraud.

This type of fraud is generally more straightforward to identify because the perpetrator is actively engaging in behavior designed to manipulate the situation for personal profit. An example includes staging an accident or creating a situation causing damage that wouldn’t have occurred otherwise. In this case, the intent behind the action to impact insurance outcomes directly aligns with the characteristics of hard fraud.