I've decided that it's a weird reversed counterpart to "impostor syndrome" (when you secretly think you're not that good while trying your best to maintain a professional standard.)

I think there's this sort of "moral impostor syndrome" where people who carefully work to present an image of themselves as good people are totally willing to participate in fraud or theft at any level - the only consideration is whether they will be caught, because they value the appearance of being good people (and of course, that appearance gives them more opportunities to commit fraud and theft safely.) If they want to do something and there's no way they'll be caught, they'll do it 100% of the time.

This is the only way I can understand people who refer to fraud as a "mistake." They see other people caught in a fraud that they can imagine that they themselves might have done, because they also wouldn't have thought that they would have ever been caught. The "mistake" was evaluating the chances of the success of a fraud badly.

The fact that they relate to these people also makes them want to give them a second chance, just as they would want to be able to recover their careers if any of their past (or future) frauds had become "mistakes."

"There but for the grace of God go I."

It's terrible. It incentivizes evil. The desperation to give people a second chance to expiate one's own secret sins by proxy creates a system where people only initially draw attention through frauds, then get caught, then get second chances. Meanwhile, people who didn't participate in fraud never get noticed. It's a perverse incentive that filters for trash. Do anything to get your name out there, then the fact that your name is out there gets you into the conversation.

Meanwhile, somebody is scolding you for being upset about it: "You're just perfect I guess. Never made a mistake." Fraud is not a mistake. You do it on purpose.