Employee theft
What is employee theft?
Employee theft is when a worker steals cash, merchandise, supplies, or company assets from their employer. This includes skimming from registers, stealing inventory, committing fraud, or abusing discounts and refunds for personal gain. Employee theft is a leading cause of shrink in businesses, often harder to detect than external theft due to insider access. It can result in financial losses, decreased employee morale, and damage to a company’s reputation. Businesses prevent employee theft with video security, transaction monitoring, and strict inventory controls to protect assets and maintain workplace integrity.
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Why is employee theft important?
Employee theft is important because it significantly impacts a business’s bottom line, security, and workplace culture. It accounts for a major portion of inventory shrink, leading to lost revenue, higher prices, and increased security costs. Unlike external theft, employee theft is harder to detect because workers have insider access and knowledge of security weaknesses. Beyond financial losses, it damages trust among employees, lowers morale, and can create a toxic work environment if left unchecked. Businesses use video security, transaction monitoring, and strict inventory controls to prevent theft, protect assets, and maintain integrity in the workplace.