What term describes losses incurred by a company due to theft by its own employees?

The term that accurately describes losses incurred by a company due to theft by its own employees is internal theft. This phenomenon specifically refers to the act of employees stealing or misappropriating company assets, which can include cash, inventory, or confidential information. Understanding internal theft is crucial for businesses as it directly impacts their bottom line and can also erode trust among staff and management.

Internal theft can take various forms, including pilfering, embezzlement, or other dishonest acts performed by employees in positions of trust. By recognizing this term, organizations can implement proper security measures, training, and awareness programs to help mitigate such risks in the workplace.

The other options reflect different concepts in terms of theft or security issues; for instance, external theft refers to losses caused by individuals who are not part of the organization, while fraudulence encompasses a broader range of dishonest actions that may not be directly tied to employee theft. A security breach typically pertains to unauthorized access or disclosure of sensitive data rather than the act of physical theft itself.