June 5, 2026 | Makenzie Kellar

Being the victim of a crime can be a devastating experience for individuals and businesses alike. Lost revenue can be difficult to make up, client trust may be damaged, and it can be hard to feel safe again even once the worst of the situation is over. This is why crime coverage is essential for special districts, not only to mitigate losses, but to provide a sense of security and a path forward if something does go wrong.  

Unfortunately, that sense of security is threatened by a disturbing trend: crime coverage often comes into play not because of random vandals or burglars, but because of a district’s very own employees. 

Employee theft is remarkably common, with a 2025 Business.com survey of 1,000 American workers finding that 67% admitted to some form of employee theft. Naturally, this is a problem employers want to resolve, a fact that is especially true for special districts that may already have limited resources. 

However, in order to solve a problem, you first have to understand it. 

What is Employee Theft?

The definition of employee theft is a simple one; it occurs when employees steal from their employer. However, this theft can take many forms. HR Acuity, an HR management software company specializing in case management and investigations, defines 14 different kinds of employee theft, though we’ll only touch on a few, condensed definitions here.  

• Merchandise/Supplies Theft: This is probably the form most people imagine when they hear the term “employee theft” and occurs when employees steal merchandise or supplies (such as office supplies or equipment) from their employer.  
• Skimming/Cash Theft: Another case likely to come to mind for employee theft, this occurs when employees “skim” money from sales or take it outright from cash registers or safes.  
• Payroll/Time Theft: Occurs when employees inflate their hours to earn income for time that they didn’t actually work. Payroll theft typically involves actually falsifying time sheets, while time theft is more along the lines of completing personal tasks during work hours. 
• Data/Intellectual Property Theft: Occurs when employees steal and disperse confidential employer data or intellectual property. Data leaks especially can seriously harm both your district’s reputation and the security of clients and other employees. 
• “White Collar” Crimes: This category contains a number of crimes that you’re probably familiar with already such as embezzlement, kickbacks, and fraudulent disbursement. While they all go about the theft in slightly different ways, each involves manipulating company systems to divert money for one’s own personal gain.  

Who Commits Employee Theft? 

While employee theft is incredibly common, there are some interesting trends to note when looking into who specifically commits employee theft the most. According to the same Business.com survey previously cited, employee age was a relevant factor with 74% of Generation Z employees having stolen from the workplace compared to 73% of Millennials, 65% of Generation X employees, and 56% of Baby Boomers. 

The data also indicated that the amount of time spent employed played a role in determining who was likely to commit theft. The most common culprits were those who had been employed for 1–10 years. Brand new employees were reported to be “on their best behavior” and employees there for 10 years or more were also unlikely to partake in theft. 

Employee salary was a notable factor not only for who was most likely to steal, but what types of theft they veered towards. While it may seem counterintuitive, higher earning employees were more likely to steal than those with lower wages. While 71% of employees earning more than $50,000 admitted to theft alongside 64% of employees earning $30,001–$50,00, only 54% of those earning $30,000 or less could say the same. The survey also noted that staff with salaried, full-time jobs were likely to commit theft, proposing that these workers felt more comfortable perpetrating minor offenses. Meanwhile, lower-income workers who rely heavily on their paycheck “have more to lose” if they get caught.  

Full-time and salaried workers, however, were less likely to steal physical items or money, instead preferring inflating hours or completing personal tasks on company time (payroll/time theft). When it came to stealing money, managers were twice as likely to steal compared to other employees. Business.com noted that this was likely because managers “have easier access to financial accounts and less supervision.”  

The Elephant in the Room: Remote Work 

Problems stemming from lack of employee supervision are at the forefront of many employers’ minds. Following the COVID-19 pandemic, remote work became a common way for many office workers to do their jobs while limiting opportunities for the virus to spread. However, with the worst of it over for most, many employers are now eager to have everyone back in one place.  

A 2025 Cisco Global Hybrid Work Study found that productivity is a top concern for employers when determining whether or not to maintain a remote or hybrid working environment. And, as Forbes noted in their article, “The Real Reasons Companies Are Forcing You Back To The Office,” it can be easier to monitor worker “input” than actually judge productivity based on the results they produce. Employers understand that remote work is largely unsupervised, providing ample opportunities for employees to slack off or partake in more serious kinds of employee theft. 

In short, employers want to be sure theft isn’t occurring right under their noses. Which raises the question, is it? 

Well, sort of.  

While the 2025 Business.com survey noted that “[r]emote employees frequently referenced that working from home distorted their balance of responsibilities,” ultimately, they reported that the chances of employee theft were similar to those of in-person workers. This is likely because, while the opportunity for time and payroll theft is increased with the lack of direct supervision, employees are not present in an office space where they can steal merchandise, supplies, or cash. So, while there’s certainly an argument to be made that in person work helps mitigate certain kinds of employee theft, it’s not the silver bullet solution some employers imagine it to be.   

How to Prevent Employee Theft 

There are two key components to preventing theft: controls and culture.  

Controls refer to the workplace policies and procedures that make theft easier to prevent or discover. For example, consider the questions below: 

• Does your district regularly audit its finances?  

• Does your district conduct supply and merchandise counts? 

• Does your district keep track of who is using what piece of equipment and when it’s returned? 

• Does anyone audit employee timesheets to check for discrepancies? 

• Can any employee access private company/client data without any sort of record or special request? 

• Does one employee have access to multiple important systems, or only the ones they need to complete their job? 

• Does your district have clear policies about what is considered theft, reporting procedures, and discipline? 

By considering these questions, you may notice clear areas of vulnerability in your district’s approach to preventing theft. Or, if anti-theft measures have not been a priority in the past, you may find that your district isn’t taking any preventative measures, requiring you to start from the ground up. If your district doesn’t keep track of supplies and merchandise, implementing a monthly count will help catch discrepancies in your inventory. If you don’t keep track of equipment, a simple “check in/check out” sheet that employees sign when they take something can be reviewed when that equipment isn’t returned in a timely manner. Simple, efficient methods such as these can help grow your district’s “control” component of theft prevention.  

Culture is somewhat more difficult to define, but equally important as it targets the motivation behind any potential theft. In the section on “Who Commits Employee Theft,” there was one statistic that was left out. People who are dissatisfied with their job are more likely to commit theft (78%) than those who aren’t (64%). Some reported reasons for employee theft included poor work-life balance, lack of supervision, feeling underappreciated or underpaid, and seeing colleagues or managers do the same thing—all indicative of a poor workplace culture.  

While building a positive work culture may not be as clear-cut of an endeavor as writing an anti-theft policy, it’s worth putting in the work. Lead by example, take an interest in the lives of your employees, and note any problems in the workplace that might lead to discontent. 

What if an Employee is Caught Stealing? 

Even if you’ve done all you can to prevent employee theft, there’s no way to perfectly account for the actions of others. So, if you find out that employee theft is occuring in your workplace, what do you do? 

First and foremost, document everything! Certain cases may need to be escalated, and having documentation of the incident and your district’s response will help with any potential legal cases down the road. Then make sure you’re conducting a thorough investigation into the incident, which begins with an interview with the employee to get their side of the story. In the best of cases, the incident may have been a misunderstanding or something that can be cleared up over the course of a conversation.  

Make sure that, throughout this process, HR is involved and you aren’t making any missteps that would violate your employee’s rights. Keep the issue confidential to avoid rumors starting in the workplace. Whether or not the employee committed theft, alienating them from their peers is unprofessional at best and ground for a defamation lawsuit at worst. 

If disciplinary action is needed, make sure that the punishment fits the crime. An employee taking a free snack from a supply meant for guests or taking a personal call while working may not need any more follow up than a verbal warning and a note in their file that the conversation took place. However, for serious cases, it may be necessary to fire the employee or even get law enforcement involved. When cases get to this point, always inform your coverage provider as soon as possible. For CSD Pool members, you have access to legal resources to guide your district through the next steps, whether that be filing a claim, working with police, mitigating losses, or navigating a lawsuit.  

In Short 

Employee theft is a more common source of crime claims than many would expect, though there are many misconceptions about what it looks like and who is most likely to be a perpetrator. That being said, there are simple and effective ways to limit theft and build a better workplace in the process. Start small, stay consistent, and don’t be afraid to reach out if you need help.  

For HR Resources visit csdpool.org/hr.  

To discuss coverage with an underwriter, send us a message at csdpool.org/connect.