What economic cycle is likely to lead to more unauthorized entity fraudulent activity?

In an economic hard cycle, characterized by rapid growth and increased consumer spending, there tends to be heightened opportunities for unauthorized entity fraudulent activity. During such periods, businesses often experience pressure to meet increasing demands, which can lead to lapses in due diligence, oversight, and security measures. As competition intensifies, some entities may resort to unscrupulous methods to gain market advantage, making it easier for fraud to occur. The environment created during a hard cycle can enable unauthorized practices to flourish, as organizations may prioritize growth and profits over thorough verification and compliance measures. Thus, the characteristics of a hard cycle make it conducive to the rise of fraudulent activities carried out by unauthorized entities.