Waste can be dealt with in operations and business processes. Waste has a different dynamic than theft. Paranoia can be counterproductive. As a general rule most employees are honest and have a certain degree of integrity. Good employees often view management paranoia as mistrust and they are right.
Compensation directly effects theft.
If your company pays significantly below the market standard your employees may view theft as a way to 'correct the injustice'. Theft, pilferage and embezzlement are tough issues and certainly one side of business that is not fun. Employees need to be aware of the consequences of theft on the bottom line and encouraged to report such abuses. If you have a problem consult with your lawyer, accountant, and Security Company. You might just prevent your own bankruptcy.