What is one reason for the increasing level of fraud in organizations?

The increasing complexity of organizations contributes significantly to the rise in fraud levels. As organizations grow and evolve, they often develop intricate structures with various departments, global operations, and multiple layers of management. This complexity can create opportunities for fraudulent activities to go unnoticed.

With numerous processes and controls spread across different areas, it becomes more challenging to monitor all transactions effectively. Additionally, a complex organizational structure can lead to ambiguous responsibilities, creating situations where employees might exploit loopholes or lack proper oversight. As such, the difficulty in maintaining transparency and accountability in a complicated framework can escalate the potential for fraud.

While other factors, like advanced marketing strategies or an increase in customer engagement, may impact an organization's operations, they do not directly relate to the mechanisms that enhance opportunities for fraudulent behavior within the organizational structure. Similarly, improvements in technology for audits may help detect fraud, but they do not contribute to its increase; rather, they play a role in potentially mitigating such risks.