Changing the product category shouldn't "get flagged eventually" after many people have already been scammed. There is no reason why such changes can't require review by Amazon except that Amazon doesn't want to pay for that.

> Theres no easy way to be fraudulent on amazon, the cost of market entry for sellers is rather big.

It's easy enough that fraud (for example recycled listings with old reviews) is common enough that many people, including myself, have run into it.

> Mislabeled products and bad account health have terrible consequesnces for sellers.

Not enough that it isn't widespread.