The core problem is that there are no single people who cannot be held legally responsible for the fraud. The responsibility is, by design, diffused across many actors.

This problem has already been solved in engineering domains, like electrical or civil. There is a single engineer who has to sign off on the design of an electric product or a bridge. If the bridge collapses and the problem was with the design, the engineer loses their license or may go to jail. Similarly, in EU, every company that deals with customer data needs a Data Protection Officer. Customer data leaks, the person is responsible.

This model has to be expanded to every other domain. Once people fear going to jail, a lot of fraud will go away.

I don't think it can be done without a sort of benevolent authoritarian which is sort of scary because of how much power and implicit trust is behind that. I wish we had a better signal to actually identify these people and elevate them into positions of power. They are readily identifiable in our own life ironically, I can think if plenty of people I know who I would say are trustworthy to do the right thing and not be blinded by profit. Just that for the subset of people who do want to make a buck on bad ideas saddled on top of people, incentives are very strong for them to get into influence, and there is no such mechanism to incentivize your good natured friend with no big profit seeking aspirations to that level. You need significant access to capital just to play in this league of getting elected or getting your company into the bidding process.

I think it comes down to the fact that we still don't have a meritocracy. It is still very much who you know from you getting a job to a company securing a contract with government, vs anything based on actual merit or ideas that are collectively beneficial vs selectively beneficial. Same old roman republic today: making favors to enrich the senators, making spectacles to distract the masses from the senators picking the public pocket. We haven't really changed the paradigm since it was established thousands of years ago with our first chieftans and shamans and their friends elevated above the rest of the tribe.