Employee Theft: A $40 Billion Industry

Abstract

Employee theft is estimated to cost American business up to $40 billion annually. The costs to society include increased business failures, along with the resulting losses in jobs and tax revenues, and higher prices passed on to consumers. An intangible societal cost is the operation of the private justice system, completely separate from the criminal justice system. Because private employers focus on preventing crimes against their businesses, including employee theft, apprehending and prosecuting criminals ex post facto is rarely a priority, and prosecution is often avoided as troublesome and unsettling. Employee thieves generally do not feel any long-term commitment to the employer and are not motivated by financial need.