The level 4 standard, with a maximum funding band of £15,000, has been approved just eight months after the institute passed the 400 approved standards mark in January.
Education Secretary Gavin Williamson said it was “fantastic news” to have reached this milestone.
“This is a great achievement and means there are now more high-quality apprenticeship opportunities available than ever before,” he added.
The counter fraud programme was developed by the Cabinet Office, HMRC, and the Department for Health and it is hoped it will be used by both central and local government
It may be of use to the Department for Education, as this news comes a day after Education and Skills Funding Agency chief executive Eileen Milner warned providers her agency will act against providers acting fraudulently in subcontracting deals.
The chief executive of the Civil Service John Manzoni said: “This apprenticeship is an important milestone for the government counter fraud profession.
“It represents the first means of direct entry into the profession and as such will be integral to embedding a baseline standard of highly skilled professionals across the counter fraud community.”
Standards were introduced in March 2016 as replacements for the old apprenticeship frameworks, as part of the government’s sweeping reforms to the system.
The pace at which standards are approved has doubled since the institute instituted its ‘faster and better’ scheme in December 2017.
After employers complained the approvals process was too slow and bureaucratic, the scheme was intended to cut through the red tape and streamline the process.
Of reaching the “impressive landmark” of 500 approved standards, institute chief executive Sir Gerry Berragan said: “We will ensure through our reviews process that all standards remain relevant and in demand by employers.”