Internal theft
What is internal theft?
Internal theft is when employees steal cash, merchandise, or company assets from their employer. This includes actions like skimming from registers, giving unauthorized discounts, stealing inventory, or committing fraud. Internal theft is a major cause of business losses, often harder to detect than external theft because employees have inside access and knowledge of security gaps. Businesses combat internal theft with video security, transaction monitoring, and strict inventory controls to protect assets and reduce shrink.
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Why does internal theft matter?
Internal theft matters because it directly impacts a business’s profitability, security, and trust. Employees stealing cash, inventory, or company assets can lead to significant financial losses, often making up a large portion of a business’s total shrink. Unlike external theft, internal theft is harder to detect because employees have access to sensitive systems and know security blind spots. Beyond financial damage, it erodes workplace morale, weakens customer trust, and can create a culture of dishonesty if left unchecked. Businesses combat internal theft with video security, transaction monitoring, and strict inventory controls to safeguard their assets and maintain integrity.
