Agree, but your explanation stops short of the full explanation: because fraud appeared, people were not punished for it, so it grew until it mattered, so everyone was punished with bureaucracy. If fraud would be quickly and severely punished (by termination), it would be at a level close enough to zero to even ignore it. But I think companies think it is better to get lower paid employees with less ethics and save 10k while losing 1k to fraud, per employee.