If fraud is tolerated, it will inevitably spread across an economic system, crowding out actual enterprise until there is none left. This is the true systemic cost of allowing fraud to fester, and comes in addition to direct costs in terms of money lost and lives destroyed. In Australia, circular investment and revaluation scams have been allowed to gradually take over the entire economy. The only viable form of business in Australia now involves fraud, as only fraud schemes can promise sufficient returns. Pie cannot be sold profitably in Australia, only pie in the sky need apply.
One form of revaluation fraud uses sham internal transactions between related parties to enable revaluation of an underlying asset. The upwardly revalued asset is then used to raise money from investors or lenders. This form of fraud has spread literally everywhere in Australia, from almond farms to restaurants to funds management. All that is required is an asset, the value of which is derived from a payment stream, and two related parties controlled by the criminals.