Employee Theft

Employee theft occurs when the employee of a business steals tangible property (e.g., cash, tools, raw materials, equipment) or intangible property [Page 425](e.g., trade secrets, designs, intellectual property) from his or her employer. This is a serious crime committed against businesses by insiders who possess specialized knowledge about the business and who have the ability to circumvent guardianship mechanisms. Although employee theft is most prevalent in places that handle numerous cash transactions, such as gas stations, corner stores, and restaurants, as many as seven in 10 businesses will experience theft by an employee. As employees engage in their normal and legitimate workplace roles, they gain knowledge of guardianship mechanisms used by the business. Employees motivated to steal use this knowledge in ways that increase the ...