Time theft is when an employee accepts pay for work or labor they should be performing but aren't. This can come in a few different forms. First is buddy punching, when another employee clocks an employee in or out if they're running late or <a href='https://wordpress-1250819-5972544.cloudwaysapps.com/excuses-to-leave-work-early/'>leaving early</a>Over-extended breaks are another version, as well as internet time theft. Timecard fraud can be performed by rounding hours up or the use of excessive personal time. All of these are considered time theft.

What is embezzlement?

Embezzlement is a common white-collar crime where an individual misappropriates assets entrusted to them. Typically the person performing the embezzlement will receive the assets legally but uses those assets for unintended purposes.

How much did employees steal in 2021?

Employees stole around $50 billion in 2021. While it's hard to pinpoint an exact number, experts estimate that roughly $50 billion is stolen from employers by employees every year. Overall though, here are the median amounts stolen from different businesses based on types of theft:<ul class='large-bullets'><li>Financial Statement Fraud: $39,800</li><li>Corruption: $11,100</li><li>Noncash: $6,000</li><li>Check & Payment Tampering: $4,600</li><li>Billing: $4,200</li></ul>

How common is employee theft?

Employee theft is surprisingly common, with 95% of US businesses being affected. In fact, US businesses report that employee theft amounted to 33.2% of inventory shrink, with the average loss from theft being $1,203.16.Further, it's estimated that 33% of corporate bankruptcies in the United States are linked to employee theft. These total business losses from bankruptcies amount to $50 billion annually.Employee theft has a huge impact on businesses, especially small ones, and is exceptionally common.

What percent of employees steal from their employers?

75% of employees have admitted stealing from their employer at least once. And that's just those who have admitted to doing it, which means the number could be even higher than three out of four. The average theft case amounts to $440.48, up 19.2% in 2020, meaning thieves aren't necessarily just stealing their bosses' pencils. Rather, many employees steal decent sums of money from their employers.However, as a silver lining, this percentage has decreased by about 4% over the last two decades. In part, employees being fired or convicted after committing theft has helped reduce these numbers.

Can you get fired for time theft?

Yes, you can get fired for time theft. This is essentially receiving pay for hours you haven't worked or tasks you haven't completed. While you will not be charged in any way (as time theft isn't a crime), your employer likely won't be happy about your performance. Plus, if the damage is bad enough, your employer may decide to prosecute in an attempt to recover losses. Regardless of the type of theft you commit, 76% of employees who commit theft are fired. Overall, 80% of perpetrators received some sort of punishment in response to the theft, from termination to being charged with an actual crime.

HR Statistics

22 Employee Theft Statistics Every Employer Should Know in 2026

Research Summary. Employee theft remains a significant challenge for businesses in 2026. Despite efforts to mitigate risks, the potential for theft by employees persists. Our research team has gathered the latest insights and findings on this issue:

75% of employees confess to stealing from their employer at least once.
Employee theft costs businesses an estimated $50 billion annually.
Approximately 95% of U.S. businesses experience some form of employee theft.
On average, 5% of an organization’s revenue is lost each year due to employee theft.
22% of small business owners report having encountered employee theft.

General Employee Theft Statistics

Employees may steal for various reasons, including personal financial struggles, feelings of entitlement, or dissatisfaction with their job. The prevalence of theft affects all types of businesses. Consider these updated statistics:

Retailers reported in a 2021 study that employee theft constituted 28.5% of inventory shrink.

This reflects a decline from 33.2% in 2018.
75% of employees have stolen from their employer at least once.

This indicates that three out of four workers have admitted to stealing during their employment period. While this figure is concerning, it has decreased by about 4% over the last two decades.
Recent studies indicate that the median loss due to theft is $8,300 per month.

Financial statement fraud is the most damaging, averaging $39,800 monthly, followed by corruption at $11,100 and noncash theft at $6,000.

median amount stolen by type of employee theft

Employee Opinions on Theft

Understanding employee motivations for theft can be complex, especially when confessions are rare. However, our research provides insights into the consequences faced by those who steal:

80% of offenders faced some form of punishment for their actions.

Among those punished, only 45% of owners and executives were terminated, compared to 66% of managers and 76% of other employees.

employee theft terminations by position

56% of employee theft cases reported to law enforcement resulted in guilty pleas.

23% of those cases led to convictions, while 12% were declined prosecution.
40% of thieves had prior HR-related issues before committing theft.

For instance, 14% had received negative performance reviews prior to the incident.

The Cost of Employee Theft

Employee theft can be particularly damaging for small businesses, which may struggle to recover financial losses. Here are some key statistics illustrating the high costs associated with theft:

The average cost of retail theft is now approximately $440.48, reflecting a 19.2% increase from 2019.

This rise correlates with broader economic challenges and shifts in consumer behavior.
It is estimated that 33% of corporate bankruptcies in the U.S. are linked to employee theft.

These bankruptcies contribute to overall business losses of $50 billion annually.

Types of Employee Theft

Theft can manifest in various forms across industries, from product theft to fraudulent practices. Here are some prevalent types:

Asset misappropriation accounted for 86% of theft cases reported in 2020.

This involves employees stealing or misusing company resources, which generally results in lower median losses of $100,000 per case.
43% of theft cases are initially uncovered through internal tips.

Among these reports, 50% come from internal employees, while 22% originate from customers.

employee theft reporting by source

41% of occupational fraud is committed by general employees.

Managers are responsible for 35% of fraud cases, while owners/executives account for 20%. However, fraud by owners/executives results in the highest losses, averaging $600,000 per case.

Employee Theft by Industry Statistics

The risk of employee theft can vary significantly by industry. Here are some notable statistics:

Mining tops the list for theft, with a median loss of $475,000 across 26 cases.

In contrast, the banking and financial services sector reported the highest number of theft cases, totaling 386 with a median loss of $100,000.

Industries With the Most Theft

Industry	Median Loss	# Of Cases
Mining	$475,000	26
Energy	$275,000	60

The insurance industry reports the lowest employee theft, with a median loss of $70,000 from 85 cases.

Communications and education sectors also reported fewer theft cases, with median losses of $115,000 and $65,000, respectively.

Industries With the Least Theft

Industry	Median Loss	# Of Cases
Education	$65,000	101
Insurance	$70,000	85

Employee Theft Trends and Predictions

Data suggests that employee theft may be increasing, potentially due to ongoing economic uncertainties. Businesses are encouraged to implement monitoring systems to detect potential theft early:

Cases of employee theft rose from an average of 323 apprehensions per retailer in 2018 to 560 in 2019.

This includes a rise in shoplifting incidents, with 509 reported cases in 2018 and 689 in 2019.
On average, 14 months pass between the start of an employee theft scheme and its detection.

Delays in detection can lead to significant financial losses, underscoring the need for proactive fraud prevention measures.

Employee Theft Demographics

The demographics of individuals committing theft provide insight into the motivations behind their actions:

72% of all occupational fraud is perpetrated by men.

This trend is consistent across all levels of authority. Male executives tend to cause larger financial losses compared to their female counterparts.
53% of fraudsters fall within the 31 to 45 age range.

Individuals aged 50 and above tend to result in the highest median losses, exceeding $400,000.
49% of employee theft is committed by individuals holding a university degree.

Contrastingly, only 22% of thefts are attributed to those with a high school diploma or less, while postgraduate degree holders commit 15% of thefts but cause the highest median loss of $200,000.

employee theft by education level

Statistics on Employee Theft FAQ

What is time theft?

Time theft occurs when an employee is compensated for work they did not perform. This can include various scenarios such as buddy punching or taking extended breaks.
What is embezzlement?

Embezzlement involves misappropriating assets that have been entrusted to an individual. The perpetrator typically has legal access to these assets but uses them for personal gain.
How much did employees steal in 2021?

Employees are estimated to have stolen approximately $50 billion in 2021. Here are median amounts stolen across various types of theft:
- Financial Statement Fraud: $39,800
- Corruption: $11,100
- Noncash: $6,000
- Check & Payment Tampering: $4,600
- Billing: $4,200
How common is employee theft?

Employee theft is prevalent, affecting 95% of U.S. businesses. In fact, it accounts for 33.2% of inventory shrink, with the average loss from theft being $1,203.16.
What percent of employees steal from their employers?

75% of employees admit to stealing from their employer at least once. This statistic reflects those who have confessed, suggesting the actual figure may be higher.
Can you get fired for time theft?

Yes, time theft can lead to termination. This behavior, while not criminal, can result in serious employment consequences.

Conclusion

Employee theft is a widespread issue that can have far-reaching consequences for businesses. Employees may resort to theft for various reasons, including financial hardship or workplace dissatisfaction. It is crucial for employers to implement effective strategies and screening processes to reduce the risk of theft and protect their assets.

Regardless of your company’s size or industry, establishing robust fraud prevention measures and conducting thorough background checks can significantly mitigate the risk of employee theft.

References

ACFE. “Report to the Nations: 2020 Global Study on Occupational Fraud and Abuse.” Accessed on September 10, 2021.
Loss Prevention Magazine. “Shedding Light on Retail Theft Statistics.” Accessed on September 10, 2021.
CalRest. “Employee Theft: Why do employees steal?” Accessed on September 10, 2021.
SHRM. “Why is Workplace Theft on the Rise?” Accessed on September 10, 2021.
CNBC. “This crime in the workplace is costing US businesses $50 billion a year.” Accessed on September 10, 2021.
Deep Sentinel. “Workplace Woes: Employee Theft Statistics.” Accessed on February 23, 2023.
Forbes. “Shoplifting Has Become A $100 Billion Problem For Retailers.” Accessed on February 23, 2023.

Author

Chris Kolmar

Chris Kolmar is a co-founder of Zippia and the editor-in-chief of the Zippia career advice blog. He has hired over 50 people in his career, been hired five times, and wants to help you land your next job. His research has been featured on the New York Times, Thrillist, VOX, The Atlantic, and a host of local news. More recently, he's been quoted on USA Today, BusinessInsider, and CNBC.

Create Resume

22 Stunning Employee Theft Statistics [2026]: Facts Every Employer Should Know