Expert Investigations

It is remarkably simple for an employee to claim that a company asset has been ‘lost’, when in reality, they may have stolen it and resold it for personal gain. This type of internal fraud often flies under the radar and has far-reaching implications beyond the surface-level value of the missing item.

In many businesses today, particularly in commercial and industrial sectors, company-owned devices such as phones, laptops, tools, and stock are issued as part of daily operations. While losses are often recorded as innocent accidents or misplacements, there is a darker and more costly undercurrent that businesses cannot afford to ignore.

The Real Cost of ‘Lost’ Items

When a phone or laptop is reported as lost, most businesses will write it off as a minor issue—an inevitable part of day-to-day operations. However, when this behaviour is intentional, the risk to the business extends far beyond the cost of replacing the item.

The resale market for stolen goods is vast and well-established. From online platforms such as eBay and Facebook Marketplace, to more discreet local networks, stolen goods of all types find willing buyers. This makes it alarmingly easy for employees to profit from theft, particularly when businesses lack robust asset tracking or loss investigation procedures.

Everything Has a Value

In my experience investigating theft and fraud across a variety of industries, one key principle has become clear: every item has a value. Whether it’s a raw material, a finished product, or even equipment used in the manufacturing process, there is always someone willing to buy it.

Even waste products or scrap metal are targets, and these items can be easily overlooked by management teams who underestimate their worth. If a member of staff realises that there is no active oversight or regular auditing, the temptation to siphon off goods for personal gain increases dramatically.

Real-World Examples of Internal Theft

Over the years, I’ve handled numerous investigations that show just how far internal theft can go when left unchecked:

Vehicle Parts Theft – £125,000

An employee used a forklift truck to load a company vehicle with high-value vehicle parts. He simply drove off-site with the stolen goods. The entire process took place during working hours without anyone questioning the activity.

Flooring Theft – £90,000

Employees loaded rolls of high-end flooring into their own vehicles and sold them online via eBay. Fortunately, a portion of the value was recovered, but the damage to the company’s trust and operations had already been done.

Scrap Metal Fraud – Estimated £100,000

On Saturday overtime shifts, three employees took advantage of the lack of supervision to load their cars with scrap metal and sell it for cash. The scam went on for years, undetected. The total losses were never fully proven but were estimated in the region of six figures.

Low-Value, High-Frequency Theft

Not all thefts need to be large to be significant. For example, an employee stealing £100 a week in small, undetectable ways can accumulate over £5,000 a year. Often, these individuals are savvy enough to keep their actions just under the radar, turning their theft into a consistent part of their income without attracting suspicion.

Conclusion

The risk of internal theft under the guise of ‘lost’ items is far more serious than many businesses realise. Every item—no matter how small—has potential value to someone. When employees see an opportunity, especially in environments with weak oversight, the temptation can be too great to resist.

For companies, this means ensuring strong internal controls, regular audits, and a culture that discourages dishonesty. The losses may start small, but if left unchecked, they can escalate into substantial financial and reputational damage. For more information, get in touch with the experts.