What is one critical outcome of effective fraud detection measures?

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One critical outcome of effective fraud detection measures is increased trust from stakeholders. When an organization implements robust fraud detection strategies, it demonstrates a commitment to transparency, accountability, and ethical behavior. Stakeholders, including investors, customers, and employees, are more likely to have confidence in the organization's integrity when they see that effective controls are in place to prevent and detect fraudulent activities. This trust can lead to stronger relationships, improved reputational standing, and ultimately, a more stable and successful organization.

In contrast, higher employee turnover, lower sales figures, and more complicated compliance processes are typically negative outcomes or challenges that may arise from ineffective fraud prevention strategies or other organizational issues, rather than outcomes of effective fraud detection efforts.

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