Financial Crimes Come in All Shapes and Sizes: From Diamond Earrings to Paper Towels
Financial Crimes Come in All Shapes and Sizes: From Diamond Earrings to Paper Towels
When people think of financial crimes in the workplace, they often imagine grand schemes—phony invoices for tens of thousands of dollars, offshore accounts, or shell companies laundering money. But in reality, many financial crimes are small, frequent, and deceptively simple. They’re committed not by master criminals, but by everyday employees who find ways to siphon funds over time—often hidden in plain sight.
Take this story, for example:
A trusted employee was in charge of managing the company’s recurring Amazon orders—office supplies, printer ink, tech accessories, you name it. These purchases occurred weekly and rarely raised a red flag. That is, until an accounting audit revealed something… sparkly. Hidden within the long list of regular purchases was a pair of diamond earrings—ordered on the company card and quietly delivered under the guise of a routine office shipment.
When asked about the charge, the employee initially claimed it was a mistake. However, further investigation showed this wasn’t a one-time occurrence. Over the course of several months, similar non-business items had been added to otherwise legitimate purchases, flying under the radar due to the volume and regularity of the orders. This method—adding personal items to business purchases—is a surprisingly common tactic in workplace embezzlement.
Unfortunately, this story is far from unique. Financial crimes by employees often blend into the background of daily operations, especially when trust and routine play a role in shielding scrutiny. Here are just a few other ways employees have been known to embezzle from businesses:
1. Misusing the Company Gas Card
Employees entrusted with company vehicles often have access to a gas card intended for business use. However, some take advantage of this perk—filling up their personal vehicles, or worse, their friends’ and family members’ cars on the company’s dime. In some egregious cases, employees even sold “cheap gas” to acquaintances for cash, pocketing the profits. Without vigilant tracking, these recurring charges can easily be mistaken for legitimate travel expenses.
2. Pilfering Basic Supplies—Toiletries Included
While not as flashy as diamond earrings, theft of everyday items like toilet paper, soap, or paper towels adds up quickly. Employees working in procurement or with warehouse access sometimes divert supplies for personal use or resale. It sounds petty—and it is—but over time, these small thefts represent real losses to the company. A case was even uncovered where an employee regularly used the office account at a wholesale retailer to stock their home with bulk goods, charging everything to the business.
3. Manipulating the Office Vending Machines
One particularly creative case involved an employee responsible for restocking and managing the lunchroom vending machines. The machines took both coins and company-issued debit-style cards refilled with a set allowance. The employee discovered that by controlling the inventory and payment tracking, they could remove cash deposits, restock with expired or low-cost snacks, and skim the difference. Because the machines were managed internally and not by a third-party vendor, the theft went unnoticed for years—until inconsistencies in inventory records finally raised questions.
Why These Crimes Go Undetected
These types of thefts are often hard to detect because they occur in the gray areas of trust and routine. A few dollars here, a small charge there—none of it seems egregious until it’s too late. It’s not just the amount stolen, but the pattern and intent that reveals the crime.
Many businesses lack internal controls or fail to separate duties among employees, creating ideal conditions for embezzlement. If one person is responsible for both making purchases and reconciling expense reports, for example, the risk is significantly higher. The same goes for departments without regular audits or review protocols.
How to Prevent These Crimes
- Implement Checks and Balances
No single employee should have end-to-end control over purchasing, reimbursement, or financial reconciliation. - Review All Statements—Even for Recurring Vendors
Just because a charge came from a trusted source like Amazon doesn’t mean every item is for business use. - Establish Clear Policies and Training
Employees should understand what constitutes fraud, including “just this once” thinking or taking small items. - Audit Regularly
Periodic, unannounced audits can uncover patterns and discourage risky behavior. - Use Purchase Order Systems and Approval Chains
Requiring secondary approval for purchases over a certain amount introduces accountability into the process.
Final Thoughts
Financial crimes in the workplace don’t always involve hacking, wire fraud, or criminal masterminds. Sometimes, it’s someone you see every day quietly slipping a luxury item into the weekly order or topping off their personal tank with company funds. These crimes may start small, but over time they erode trust, morale, and financial stability.
Business owners, managers, and accounting teams should remain vigilant—not paranoid—but aware that fraud often wears an everyday face. The best defense isn’t suspicion, but structured systems that make abuse difficult and transparency routine. In the end, prevention isn’t just about protecting the bottom line—it’s about fostering a culture of honesty and accountability.
