IPSFF Publishes New Fraud Prevention Savings Framework

The Framework sets out key principles and credible approaches to estimating and quantifying the financial and non-financial benefits of fraud prevention and compliance activities.

Key areas covered by the report include:

➡️ Preliminary Activities: Organisations should define scope, identify fraud and error causes, assess controls and establish a baseline before measuring savings;

➡️ Measurement Method: Savings Measurement should develop a counterfactual, estimate the effect of the intervention and quantify approximate savings over a defined period;

➡️ Prevention Categories: The Framework distinguishes primordial, primary, secondary and tertiary prevention to show how different interventions reduce fraud and error;

➡️ ROI: Organisations should compare expected or achieved savings against the full cost of implementing interventions; and

➡️ Non-Financial Benefits: Public bodies should also consider impacts such as public confidence, government outcomes, reputation, security and system integrity.

✅ Public sector bodies should use the Framework to evidence the value of fraud prevention, strengthen investment cases and support earlier, more cost-effective intervention.