Which of the following is a consequence of trade fraud?

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Trade fraud leads to a variety of negative consequences, one of the most significant being the support it provides for criminal organizations. Engaging in fraudulent activities allows these organizations to profit illicitly, which can enable and empower them to operate more freely. This financial backing can be utilized to fund further illegal activities, undermine legal businesses, and proliferate other forms of organized crime.

As a result, trade fraud directly impacts the integrity of markets and economic systems, destabilizing them by shifting the balance of power toward those who exploit legal loopholes for unlawful gain. Support for criminal organizations not only affects businesses and economies but also poses broader implications for law enforcement and public safety as it complicates their efforts to maintain order and protect community interests.

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