What is Embezzlement?

Definition and meaning of embezzlement: Embezzlement is the intentional misappropriation of funds or property that have been entrusted to one’s care. To qualify as embezzlement, the offender must have been granted access to the assets that were misappropriated. 

Embezzlement can occur in a variety of settings, such as the workplace, student organizations, volunteer organizations, and government. This crime is often committed by those in positions of authority, as they are entrusted with control over financial resources and have the opportunity to manipulate records or divert assets without immediate detection. 

Embezzlement can occur through various schemes and tactics, which are often tailored to the specific environment in which the offender operates. In a corporate setting, for example, an employee with access to company funds might create false invoices, diverting payments to personal accounts instead of legitimate vendors. In non-profit or volunteer organizations, a treasurer or financial officer might skim small amounts from donations or membership fees over time, making the theft less noticeable. In government and political organizations, embezzlement might involve the misuse of campaign funds for personal expenses, disguised as legitimate campaign costs. Another common method is payroll fraud, where an individual manipulates the payroll system to issue payments to fictitious employees or to themselves under false pretenses. These examples highlight the various ways embezzlement can be carried out, often taking advantage of weak internal controls or a lack of oversight.

Learn more about embezzlement and other common forms of corruption on our blog.