Insurance Fraud is seen as any act of intentionally deceiving an insurance company in order to obtain money to which there is no legal claim. Insurance fraud generally could be soft or hard. It is soft insurance fraud which consists of policyholders exaggerating otherwise legitimate claims. For example, when involved in a collision an insured person might claim more damage than was really done to his or her car. Soft fraud can also occur when, while obtaining a new insurance policy, an individual misreports previous or existing conditions in order to obtain a lower premium on their insurance policy. Soft fraud, which is far more common than hard fraud, is sometimes also referred to as opportunistic fraud. Hard insurance fraud at the other hand occurs when someone deliberately plans or invents a loss, such as a collision, auto theft, or fire that is covered by their insurance policy in order to receive payment for damages. It is a much more serious but less common than soft insurance fraud, but has still cost insurance providers millions of dollars.