Measuring fraud prevention savings
Fraud prevention is widely regarded as the most cost-effective and efficient means of mitigating fraud risk. However, its value and impact have historically been difficult to quantify. The hidden nature and underestimated problem of fraud also lead to a lack of investment to deal with it.
To help address these challenges, the Centre partnered with the United Kingdom’s Public Sector Fraud Authority to develop the International Public Sector Fraud Forum (IPSFF) Fraud Prevention Savings Framework. The framework is designed to help public sector organisations estimate and quantify both the financial and non-financial benefits of fraud prevention and compliance activities.
Being able to measure the savings of fraud prevention is essential in solidifying the case that prevention is better than cure when it comes to public sector fraud. The framework sets out the tools to make that debate easier.
Launched in September 2025 at the IPSFF Summit in London, the draft framework was described by participants as a ‘massive leap forward’ in the public sector’s ability to measure the benefits of fraud prevention.
About the framework
Fraud prevention savings measurement involves applying consistent and credible approaches to estimate and quantify the impact and return on investment of fraud prevention and compliance activities in public sector organisations.
The framework:
- outlines the key parts of measuring fraud prevention savings
- sets out preliminary activities that can help with measuring fraud prevention savings
- provides models and approaches for developing counterfactuals, estimating the effect of an intervention, and quantifying savings
- offers guidance on communicating findings to decision-makers, and
- outlines governance arrangements to provide a level of assurance that approaches are robust and consistent.
The benefits of measuring fraud prevention savings
Measuring fraud prevention savings can help public sector organisations:
- show the value of investing in counter-fraud activities
- provide evidence to support future investment in fraud prevention
- show that the benefits of fraud prevention and compliance outweigh the cost and effort involved
- achieve a more cost-effective fraud management approach by finding the right balance between preventing fraud and responding to it after it happens.
Interested in piloting the framework?
If you are interested in piloting the processes and methodologies outlined in the framework, we would love to hear from you.
To find out more about participating in a pilot, contact us at info@counterfraud.gov.au.