You need to increase the size of your flash. If it's just a popup, I'm not sure what you can do. If you have an external flash you can attach you'd be better off, then you could attach a small softbox to help dissuse your light and reduce shadows.
Also, you can take your photos from lower down towards the floor. This way your subjects should hide more of the shadow.
Alternatively, You can go for the dark, moody style by not even using the flash. Most people don't like that though...
Anyway...see ya.
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