What is a common characteristic of hard fraud in the insurance context?

Hard fraud in the insurance context is characterized by the deliberate staging of an event, such as causing an accident or intentionally damaging property to submit a fraudulent insurance claim. This type of fraud is distinct because it involves intentional actions taken to deceive insurers for financial gain. Unlike exaggerating existing damages, which can involve manipulation of legitimate claims, hard fraud starts from a place of deceit by creating situations that would not have occurred otherwise. The motivation behind staging events is typically driven by the potential for significant payouts, making it a serious offense within the insurance industry and often resulting in severe penalties if discovered. Understanding this type of fraud is crucial for insurance professionals and adjusters as they investigate claims and identify potential fraudulent activities.