Well, racism certainly isn't a fraud, but those keeping it alive in order to secure privilege over others certainly are frauds.
It generally works like this:
A Black person hates whites and treats the white people around them like shit. White people respond to the hatred and rudeness and are then accused of being racist by the black person, by a good percentage of blacks, and (importantly) by virtue-signaling whites looking for feel superior.
Many of these white people are in positions of power and so try to punish any other white people for simply objecting to all the racial hatred they are facing. It's all one big vicious circle.