Final answer:
The statement that is NOT true is that preventing fraud can save the family of the perpetrator from embarrassment, as this is not a primary goal of fraud prevention controls. Fraud prevention aims to protect assets, reputation, legal compliance, and deter crime through effective strategies that may include increasing the costs and risks of committing fraud.
Step-by-step explanation:
The question posed is about identifying which statement is NOT true concerning the importance of fraud prevention controls. It's known that such controls are vital for organizations not only to safeguard their assets but also to protect their reputation and ensure legal compliance. However, one of the statements provided overstates the scope of these controls by suggesting that preventing fraud can save the family of the perpetrator from embarrassment. While this might be a tangential effect, it is not the primary aim or a guaranteed outcome of fraud prevention efforts.
Effective crime prevention strategies, including those that deter fraud, generally involve raising the costs or probability of getting caught to outweigh the potential benefits of committing the crime. Furthermore, there's a point at which additional prevention measures may not be cost-effective. This aligns with the economic principle of reducing crimes to the extent that the benefit of prevention measures equals their cost. Therefore, it's not necessarily true that the costs of controls are always less than the potential losses from fraud, as it depends on the level of crime prevention implemented.