Definition
Management fraud refers to fraudulent acts committed by individuals in senior or decision-making positions who use their authority to override controls or influence outcomes.
Context
Management fraud is closely linked to control override, corruption, and weaknesses in internal controls and governance structures. It often occurs in connection with financial statement manipulation, incentive misalignment, and insufficient oversight.
Meaning
Particularly high-impact and difficult to detect due to authority, access, and influence.
Example
Executive-led financial manipulation.
Sources
Suggested citation
wirtschaftsforensik.ch Editorial Team: "Management Fraud", in: Glossary, wirtschaftsforensik.ch, https://wirtschaftsforensik.ch/glossar/management-fraud/, accessed April 18, 2026.