Torment Fraud is similar to the Fraud activity from previous entries, where you basically need to throw yourself out in front of traffic and get hit by vehicles. Instead of playing as your character, you instead control a Husk that is supposed to be characters from past Saints Row games.
You have a button that lets you go ragdoll, so use that as soon as you hit a vehicle. It is more common to hit a vehicle and explode, knocking you high into the air. You want to hit as many vehicles as possible, meaning that highways and intersections are the best places to go to when starting this activity.