Technical Update vol. 29 no. 47 - Workplace Theft

Workplace theft remains a significant concern across public and private sectors, and counties are no exception. According to the Association of Certified Fraud Examiners (ACFE) 2024 Report, organizations lose an estimated 5% of their annual revenue to occupational fraud and theft.. For counties, those losses directly impact budgets, services, and taxpayer trust.

While theft of cash or materials is still common, non-cash theft, such as misuse of vehicles, equipment, tools, or data, has grown steadily in recent years. Even small, repeated incidents like fuel misuse, timecard fraud, or taking supplies for personal use can accumulate into major losses. 

WHY IT HAPPENS

Workplace theft doesn’t occur in isolation. Experts often point to the “fraud triangle,” three common factors that drive such behavior: pressure, such as financial or personal stress; rationalization, where individuals justify theft as harmless or deserved; and opportunity, created by weak internal controls, limited oversight, or inconsistent accountability. 

THE TRUE COST OF THEFT

The impact of workplace theft extends far beyond the dollar amount.

• Financial loss: Replacement of stolen or misused property strains already tight budgets.
• Administrative burden: Investigating, documenting, and resolving theft incidents consumes valuable staff time and resources.
• Reputation: Theft erodes employee morale and damages public confidence in county operations.
• Insurance implications: Frequent or unaddressed incidents may affect liability and property coverage over time.

COMMON TYPES OF WORKPLACE THEFT

Workplace theft can take many forms within county operations. Common examples include:

• Misuse of fuel cards or county vehicles for personal errands.
• Taking supplies, tools, or equipment home for personal use.
• Theft of cash from petty funds, registration fees, or community events.
• Timecard fraud or “buddy punching” for absent coworkers.
• Misuse of technology, data, or software licenses for personal gain.
• Inflating expense reimbursements or falsifying receipts.
  

PREVENTION STRATEGIES

Preventing workplace theft requires clear communication, strong controls, and a culture of accountability. Regular audits of supplies, fuel cards, and equipment, paired with tracking systems and dual approval processes, help strengthen oversight. Clear written policies and ongoing ethics training ensure employees understand that county time and property are for official use only.

Counties should also provide confidential ways to report suspected theft and commit to promptly investigating all concerns. Regularly reviewing financial records and rotating duties can help detect irregularities and limit opportunities for misuse. Above all, leaders set the tone by modeling ethical behavior and addressing issues quickly to maintain trust and transparency across the organization.

WHAT THIS MEANS FOR COUNTIES

For counties, workplace theft is more than a personnel issue; it’s a governance and community trust issue. CTSI recommends regularly evaluating theft-prevention procedures, training supervisors to identify red flags, and promoting accountability at every level. Maintaining awareness, strengthening controls, and encouraging open communication can help counties preserve public trust and reduce exposure to loss. For additional guidance on loss prevention and reporting, contact CTSI at (303) 861-0507.