John's act of burning his car to collect an insurance settlement is an example of?

John's act of burning his car to collect an insurance settlement is an example of hard fraud. This term refers to the deliberate act of deceiving an insurance company for financial gain through actions such as staging an accident, committing arson, or submitting false claims. In this case, John intentionally destroyed his property with the purpose of benefiting from an insurance payout, which characterizes it as a fraudulent action.

Hard fraud is distinct from other types of fraud, as it involves clear and overt actions taken to create loss or damage that wouldn’t have naturally occurred. It represents a direct and conscious effort to commit fraud, contrasting with soft fraud, where a person might exaggerate a legitimate claim without outright lying or creating a loss. Understanding the implications of hard fraud helps maintain accountability and integrity within the insurance industry.