Which individual committed soft fraud in the scenario provided?

Soft fraud, also known as "friendly fraud," typically involves the inflation or exaggeration of claims rather than the outright fabrication of events. In the scenario, Rafael, who exaggerated his injury, fits this definition perfectly. By embellishing the severity of his injury for the sake of receiving a larger insurance payout, he engages in a deceptive practice that is characteristic of soft fraud.

In contrast, other actions described do not align with the definition of soft fraud. Creating fake claims, as done by Ian, signifies a more extreme form of fraud—hard fraud, where the individual intentionally fabricates events to deceive insurers. Farah's act of deliberately burning down her house is also a clear case of hard fraud due to the intentional destruction of property to claim insurance money. Similarly, Taariq, who caused an accident, may or may not be acting fraudulently, depending on the circumstances of the accident itself; however, unless he is also exaggerating damages or injuries, it doesn't necessarily meet the standard for soft fraud.

Consequently, Rafael's case exemplifies the nuances of soft fraud, demonstrating how exaggeration can lead to fraudulent claims, making him the correct answer in this scenario.