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If the scammers were hurting Amazon then I have little doubt they would have done something about it long ago.
But while scammers do hurt the genuine authors who have their books buried under the mountain of scammer-infested garbage, and they do hurt the readers who have to dig through that reeking pile to find good books, they probably don't harm Amazon at all.
Amazon sells click advertisements to authors which are inserted in search results and other places on the site. The more that genuine books become buried by scam and garbage books, the more the authors need to spend on advertising to stay visible. The authors are not only sharing their Kindle Unlimited subscription income with the scammers, they are paying Amazon from their share of it for advertising to offset the effects of the scammer's activities.
If there are not enough scammers then there is always Amazon's broken search function and its large number of genre categories filled with miscategorised books to ensure that any author playing by the rules will need to spend more on advertising to get their books seen on the site.
I just hope that they don't drop the exclusivity conditions on KU, or else that mountain of garbage that is currently contained mainly on Amazon will flood out and engulf the other retailers too.
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