What trend in business has contributed to an increase in collusive frauds?

The correct answer highlights the trend of increased frequency of supplier alliances, which can lead to a greater risk of collusive frauds. When businesses form strategic partnerships with suppliers, they may create environments where collaboration can sometimes cross ethical lines. This can occur due to shared access to sensitive data, joint decision-making powers, and the ability to manipulate pricing or terms without external oversight.

As suppliers work closely together, the potential for collusion increases when they agree to engage in fraudulent activities such as price-fixing or bid-rigging. The network of alliances creates opportunities for colluding entities to coordinate their actions in a manner that might not be possible in a more competitive or fragmented market. The collaborative nature of these alliances can reduce the perceived individual risk of being caught engaging in fraudulent behavior, making it easier for such activities to flourish.

In contrast, the other answer choices reflect trends that either do not inherently contribute to collusive fraud or work against its occurrence. For instance, a reduction in digital transactions typically decreases the complexity and anonymity of financial interactions. Growing competition in pricing generally pressures companies to compete fairly, potentially reducing instances of collusion. Enhanced cybersecurity measures aim to protect against fraud, making it more difficult for collaborative fraudulent actions to be executed without detection. Therefore,