What type of theft occurs when an employee steals from the company they work for?

Internal theft is characterized by theft that is committed by employees against their employer. This type of theft can involve stealing merchandise, money, or proprietary information and can significantly impact a company's finances and overall morale. Employees may exploit their access and knowledge of the company’s systems to carry out these acts, often taking advantage of the trust that employers place in them. Internal theft can manifest in various forms, such as inventory shrinkage, payroll fraud, or misuse of company resources. Recognizing and addressing internal theft is crucial for organizations to safeguard their assets and foster a trustworthy workplace environment.

In contrast, external theft refers to theft perpetrated by individuals who are not associated with the company, shoplifting specifically describes stealing items from a retail establishment, and fraud generally encompasses illegal actions intended to secure unfair or unlawful gain, which may or may not involve employee actions.