A
Average Fraud Duration
DEFINITION
Time between fraud initiation and detection.
MEANING
Shorter duration indicates effective detection.
EXAMPLE
Fraud detected after 14 months.
C
Cost of Fraud Management
DEFINITION
Total cost of fraud management.
MEANING
Supports cost-benefit analysis.
EXAMPLE
Budget for analytics and training.
D
Data Analytics Detection
DEFINITION
Use of data analysis to detect anomalies.
MEANING
Enables continuous monitoring.
EXAMPLE
Duplicate vendor analysis.
Data Analytics for Fraud Detection
DEFINITION
Use of data to identify fraud patterns.
MEANING
Enables full-population testing.
EXAMPLE
Matching vendor and employee data.
Detection Source Ratio
DEFINITION
Distribution of fraud detection sources.
MEANING
Indicates most effective detection channels.
EXAMPLE
60 percent detected via tips.
F
Forensic Interviewing
DEFINITION
A structured interviewing technique used to gather reliable information during investigations.
MEANING
It supports fact-finding while respecting legal and ethical standards.
EXAMPLE
Investigators conduct structured interviews during an internal inquiry.
Fraud Case Frequency
DEFINITION
Number of fraud cases over a period.
MEANING
Supports trend analysis.
EXAMPLE
Increase from 5 to 9 cases per year.
Fraud Detection Methods
DEFINITION
Systematic methods used to identify fraud.
MEANING
Combining multiple methods increases detection likelihood.
EXAMPLE
Tips, data analytics, and internal controls.
Fraud KPI
DEFINITION
Quantitative metric used to measure fraud risk, cases, or control effectiveness.
MEANING
Supports management oversight and reporting.
EXAMPLE
Number of detected fraud cases per year.
Fraud Loss Amount
DEFINITION
Total financial loss caused by fraud.
MEANING
Key indicator of financial impact.
EXAMPLE
Total loss from fake invoices.
Fraud Loss per Case
DEFINITION
Average loss per fraud case.
MEANING
Supports risk prioritization.
EXAMPLE
Average loss of 120,000 CHF per case.
Fraud Prevention
DEFINITION
Measures designed to prevent fraud.
MEANING
More effective than post-incident response.
EXAMPLE
Employee awareness training.
Fraud Recovery Rate
DEFINITION
Percentage of recovered losses.
MEANING
Indicates recovery effectiveness.
EXAMPLE
30 percent recovered.
Fraud Reporting Timeliness
DEFINITION
Time between detection and reporting.
MEANING
Delays increase liability.
EXAMPLE
Late escalation to compliance.
Fraud Risk Assessment
DEFINITION
A structured process to identify, assess, and prioritize fraud risks across an organization’s processes and systems.
MEANING
It provides the foundation for effective prevention by identifying incentives, opportunities, and control weaknesses.
EXAMPLE
A company assesses procurement risks and identifies weak vendor due diligence.
H
High-Risk Process Exposure
DEFINITION
Percentage of high-risk processes.
MEANING
Supports risk-based allocation.
EXAMPLE
Procurement identified as high risk.
I
Investigation Duration
DEFINITION
Time required to complete investigations.
MEANING
Long durations increase cost.
EXAMPLE
Investigation lasts six months.
M
Management Review
DEFINITION
Review activities performed by management.
MEANING
Early detection of anomalies.
EXAMPLE
Management questions cost deviations.
R
Red Flags
DEFINITION
Indicators or patterns that may suggest fraud or abuse.
MEANING
They are early warning signals, not proof.
EXAMPLE
Repeated payments just below approval thresholds.
S
Shell Company
DEFINITION
A legally registered entity with little or no operational activity.
MEANING
Shell companies are not inherently illegal but may represent a red flag depending on context.
EXAMPLE
Payments made to an entity with no real business operations.
T
Time to Detection
DEFINITION
Time required to detect fraud.
MEANING
Critical for loss mitigation.
EXAMPLE
Fraud identified within two weeks.
Timing Anomalies Red Flag
DEFINITION
Transactions at unusual times.
MEANING
May indicate concealment.
EXAMPLE
Late-night postings.
Tips and Whistleblower Reports
DEFINITION
Information received from employees, customers, or third parties.
MEANING
Most common fraud detection source.
EXAMPLE
Anonymous hotline report.
Tone at the Top
DEFINITION
The ethical example and leadership set by senior management.
MEANING
Consistent leadership behavior significantly reduces fraud risk.
EXAMPLE
Leadership enforces expense rules consistently.
Training Coverage Rate
DEFINITION
Percentage of employees trained.
MEANING
Supports prevention.
EXAMPLE
90 percent complete fraud training.
Transaction Pattern Red Flag
DEFINITION
Unusual transaction patterns.
MEANING
Suggest structured fraud.
EXAMPLE
Repeated small payments.