The removal of cash from a victim organization before the cash is entered in the accounting system is known as:

Skimming is a form of theft that occurs when cash is taken from a business before it has been recorded in the accounting system. This method allows the perpetrator to conceal the theft because the transaction is never logged, making it difficult to trace and detect. Skimming typically involves taking cash from sales, such as when an employee pocketing customer payments before they are entered into the sales records.

In this context, skimming is particularly insidious because it affects the company’s revenue while simultaneously disguising the loss. Since the cash has not been documented, the organization may remain unaware of the missing funds until it conducts a thorough audit or notices discrepancies later on. Understanding skimming is crucial for recognizing how such schemes can evolve and become detrimental to an organization’s financial health.

Other options like lapping involve manipulating accounts receivable, a fraudulent disbursement refers to improper payments for goods or services, and cash larceny pertains to the theft of cash that has already been recorded. Each of these involves different mechanisms of fraud, leading to misappropriation but distinct from the direct, pre-recording action described in skimming.