Why can internal theft impact a business more significantly than external theft?

Employees typically have greater access and opportunity, which makes internal theft significantly more impactful on a business than external theft. When employees are within the organization, they often know the layout, processes, and security measures in place, allowing them to exploit vulnerabilities more effectively. They have access to products, cash, information, and sometimes even internal systems, which external perpetrators do not.

Since employees can act with greater knowledge and understanding of the internal workings of the business, they may be able to carry out thefts in ways that are harder to detect and prevent. This can lead to higher losses over time, as internal theft is often more systematic and can occur over a longer duration compared to external theft, which might be more sporadic and impulsive.

Furthermore, the betrayal of trust that comes with internal theft can also have damaging effects on employee morale and the overall workplace culture, which extends the impact beyond just financial loss. This combination of factors illustrates why internal theft is often viewed as a more significant threat to businesses than external theft.