According to the ACFE’s “Report to the Nations 2022 Global Study on Occupational Fraud and Abuse,” asset-misappropriation schemes accounted for by far the greatest share of cases (86 %), but they produced the lowest median loss (USD 100,000).
• They were therefore more common than financial-statement-fraud schemes (9 % of cases), satisfying the first part of the quoted sentence.
• However, they were not “more costly than corruption.” Corruption schemes, while occurring in roughly half of the cases (50 %), produced a higher median loss (USD 150,000) than asset misappropriation. Because the cost comparison in the statement is incorrect, the entire statement is false. Why the Other Option (True) Is Wrong: Selecting “True” would require both frequency and cost elements to be accurate. The cost element contradicts the empirical data—asset-misappropriation losses are lower, not higher, than corruption losses—so the statement cannot be true.

A. True: This option is incorrect. The assertion that asset misappropriation schemes are "more costly than corruption" is factually wrong based on data from the primary source for this subject, the ACFE's Report to the Nations.

References:
1. Association of Certified Fraud Examiners (ACFE). (2022). Occupational Fraud 2022: A Report to the Nations. Page 11, Figure 3, "Frequency and Median Loss by Occupational Fraud Category": This figure explicitly shows that asset misappropriation schemes have a median loss of $100,000, while corruption schemes have a median loss of $150,000. This directly contradicts the question's claim that asset misappropriation is more costly than corruption. Page 10, "How Is Occupational Fraud Committed?": The report states, "Asset misappropriation was by far the most common form of occupational fraud, occurring in 86% of cases. However, these schemes also tended to cause the lowest median loss at USD 100,000. At the other end of the spectrum, financial statement fraud was the least common category (9% of schemes) but the most costly, with a median loss of USD 593,000." This text confirms the inverse relationship between frequency and cost for asset misappropriation and financial statement fraud, and places corruption in the middle.

1. Association of Certified Fraud Examiners (ACFE). “Report to the Nations: 2022 Global Study on Occupational Fraud and Abuse,” p. 8–9, Exhibit 2 & Exhibit 3.

2. Association of Certified Fraud Examiners (ACFE). “Occupational Fraud 2020: A Report to the Nations,” p. 21–22 (shows identical pattern across studies).