Expert Investigations

When we talk about business losses, most minds jump straight to the obvious culprits—external theft, burglary, cyber-attacks. However, the slow and steady drain caused by internal theft, particularly of consumables and stock-in-trade, is often more widespread than business leaders care to admit.

In many cases, it isn’t high-value items like laptops or vehicles being stolen, but everyday consumables—items that are easy to slip away, easy to sell, and difficult to trace. From tools and cleaning supplies to spare parts and raw materials, these ‘small’ losses can add up to staggering amounts over time. And yet, this type of loss remains dangerously under-addressed.

Business Blindness to Internal Risk

There is a worrying level of negligence and, frankly, immaturity among many businesses when it comes to recognising internal theft and fraud as genuine threats. While most companies take proactive steps to guard against external criminals, far fewer give the same attention to dishonest activity from within their own workforce.

Very rarely is internal fraud or employee theft a standing item on Board Room agendas. In fact, it often takes a serious breach before action is taken—when it’s already too late. It’s a classic case of shutting the stable door after the horse has bolted.

As someone with years of experience investigating commercial theft and fraud, I continue to be baffled by the lack of awareness at director level. Time and again, I’ve seen preventable crimes overlooked due to poor internal oversight or misplaced trust in staff. What’s worse, there are often simple, cost-effective measures that could be introduced to prevent, disrupt, or detect such crimes early—but they’re not.

A Data Black Hole

One of the greatest challenges in tackling this issue is the absence of reliable data. Unlike burglary or cybercrime, workplace theft is poorly tracked. Police forces don’t record it in a distinct category, and a Freedom of Information request I made to every UK police force confirmed that no meaningful data is held.

Even official fraud figures are skewed. Most statistics are based only on convictions, not on the vast number of offences that remain undiscovered or unreported. In essence, we are looking at the tip of a much larger iceberg.

Shocking Fraud Detection Stats

According to the Report to the Nations 2024, 19% of fraud cases were discovered entirely by accident. A further 32% occurred when existing internal controls were deliberately overridden. That means only 49% of systems were effective in preventing fraud—and that’s only for the cases we know about.

It’s no stretch to assume that many more offences go completely unnoticed, quietly draining resources and eating into a business’s bottom line.

Theft Of Internal Stock Has No Boundaries

From my investigations, I can confidently state that there is potential for dishonesty in every kind of business—regardless of its size, sector, revenue, or location. Whether it’s a multinational manufacturing plant or a local wholesaler, the opportunity for employee theft exists. And where opportunity exists, some will exploit it.

Conclusion

The internal theft of consumables and stock isn’t just a nuisance—it’s a serious financial risk. Yet too often it’s treated as an afterthought. Businesses must start viewing this threat with the seriousness it deserves. Prevention begins not with reaction, but with awareness and proactive action. If company leaders continue to underestimate this risk, they’ll find themselves paying for it—quietly, consistently, and needlessly. For more information, get in touch with the experts.