Soft Fraud typically involves which of the following actions?

Soft fraud generally involves actions where an individual inflates or exaggerates the severity or extent of a legitimate insurance claim. By providing exaggerated details of damages, injuries, or the events surrounding the claim, the claimant seeks to receive a higher payout than what is warranted. This is different from hard fraud, where a complete fabrication of a claim occurs.

Exaggerating an actual loss or damage can occur in many situations, such as claiming more significant medical expenses or extensive damages than actually occurred, all while the original claim is based on a true event. This type of behavior can lead to increased costs for insurers and can ultimately affect premiums across the board.

In contrast, the other options describe more overt fraudulent behaviors, such as creating fictitious claims, fabricating documents, or concealing damage or evidence, which are considered more severe violations of insurance law and ethics. These actions would classify as hard fraud, making them distinct from the nuances of soft fraud.