Asset Misappropriation

Asset misappropriation occurs when an employee or individual intentionally steals or misuse an organization’s resources, such as cash, inventory, or supplies. It’s a form of fraud where someone with access to company assets exploits their position for personal gain. Examples include theft of money, embezzlement, or inventory theft. This type of fraud can harm the organization financially, damage its reputation, and disrupt operations. Detecting and preventing asset misappropriation involves strong internal controls, regular audits, and vigilant oversight to ensure resources are used appropriately and safeguarded against theft.