Definition
Cost of Fraud Management refers to the total resources required for fraud prevention, detection, and investigation, including personnel, systems, analytics, and training.
Context
The cost of fraud management is closely linked to fraud risk assessment, data analytics for fraud detection, and internal controls. It arises across the full control lifecycle, from preventive measures to continuous monitoring and investigative activities.
Meaning
It supports cost-benefit analysis and enables organizations to balance investment in controls against potential fraud losses.
Example
Budget allocated to fraud analytics tools, internal audits, and employee training programs.
Sources
Suggested citation
wirtschaftsforensik.ch Editorial Team: "Cost of Fraud Management", in: Glossary, wirtschaftsforensik.ch, https://wirtschaftsforensik.ch/glossar/cost-of-fraud-management/, accessed April 18, 2026.