When Jane rear-ends Frank, what type of fraud is Frank committing by claiming he is hurt?

The situation described involves Frank claiming to be injured after being rear-ended by Jane. This scenario aligns with soft fraud, which occurs when an individual exaggerates or inflates the severity of an injury or claim in order to receive higher compensation from an insurance provider.

Soft fraud is characterized by deceitful practices that may not involve entirely fabricated claims, but rather a manipulation of the realities of the situation. In this case, Frank may not be completely fabricating his injury but instead potentially embellishing it to take advantage of the incident financially.

Understanding this concept is essential for individuals in the insurance sector, as it highlights the nuances of fraudulent activities and the varying degrees of severity between types of fraud, such as hard fraud which typically involves completely false claims. This distinction can influence how claims are investigated and handled by adjusters and insurance companies.