it is not just privacy reasons, there are more to reusing the same bitcoin address more than once for receiving multiple deposits. for example the biggest problem most people will face these days is the higher fees.
read this:
https://en.bitcoin.it/wiki/Address_reuseHmm. This is the first time I've seen to reusing addresses referred to as fraud. Using one address to accumulate funds (for example, through escrow) or simply to track legitimate earnings are great reasons to want to use the same address. And yes, the privacy issue is there but having a known address signed by you is one way of verification.