It’s an assumption of a pact among fraudsters (a fraud ring). I’ll cover for your lies if you cover for mine. It’s a kind of peace treaty.
In the context of fraud rings being pervasive, it’s valuable to allow truth and reconciliation: let the fraud that has been committed come to light (as well as the processes causing it), while having a precommitment to no punishments for people who have committed fraud. Otherwise, the incentive to continue hiding is a very strong obstacle to the exposition of truth. Additionally, the consequences of all past fraud being punished heavily would be catastrophic, so such large punishments could only make sense when selectively enforced.
It’s an assumption of a pact among fraudsters (a fraud ring). I’ll cover for your lies if you cover for mine. It’s a kind of peace treaty.
In the context of fraud rings being pervasive, it’s valuable to allow truth and reconciliation: let the fraud that has been committed come to light (as well as the processes causing it), while having a precommitment to no punishments for people who have committed fraud. Otherwise, the incentive to continue hiding is a very strong obstacle to the exposition of truth. Additionally, the consequences of all past fraud being punished heavily would be catastrophic, so such large punishments could only make sense when selectively enforced.
Right… but fraud rings need something to initially nucleate around. (As do honesty rings)