Your institution should also investigate those suspected crimes where, even though the institution suffered no direct loss, it was used as a vehicle to commit a crime against a customer. Embezzlement is the most popular financial crime in the nation, and is the predominant factor in the failure of all types of businesses. Embezzlement is often the most misunderstood and complicated crime to discover, or to investigate. Embezzlement, or defalcation, is defined as the intentional misuse or misappropriation of funds or property entrusted to an employee. All embezzlements share the same three common elements, regardless of the actual method used to commit the crime.
Embezzlements are generally both ego and habit crimes, and are rhythmic, predictable and cyclic.
Embezzlers rationalize their behavior to conform with their own morals and ethics. Embezzlers realize that their actions will ultimately hurt people around them, and they just don't care. Embezzlements are secret crimes, but someone else within the institution often has knowledge of the crime. Most embezzlements are actually a series or combination of crimes, rather than a single crime. The majority of embezzlements begin as a simple misuse of the institution's funds for a short-term personal purpose.