The present study examines the impact of fraud risk management (FRM) on organizational performance using the Balanced Scorecard framework, while also exploring the moderating role of employee creativity. The aim is to explain how effectively integrating anti-fraud controls with organizational creativity (i.e., employee creativity) can enhance performance and strengthen stakeholder trust. The statistical population consists of managers, accountants, and auditors from manufacturing companies located in the industrial town of Yazd Province in 2024. The sample size of 214 individuals was determined using Cochran’s formula, and participants were selected through convenience sampling. Data were collected and analyzed via a questionnaire. The findings revealed that both fraud risk management and employee creativity exert a positive effect on organizational performance. However, creativity moderates and weakens the direct effect of FRM on performance by opening innovative pathways. Consequently, simultaneous investment in fraud risk management and in fostering employee creativity is essential for enhancing transparency, reducing fraud, and increasing competitiveness. This combination ultimately leads to improved internal processes and organizational sustainability.