Which two categories do cash theft schemes fall into?

Cash theft schemes typically fall into two primary categories: skimming and cash larceny.

Skimming is the act of taking cash before it has been recorded in the company's accounting records. This often occurs in environments such as retail where cash transactions are conducted. The perpetrator collects cash from a sales transaction but fails to report it, thereby pocketing the funds without any official record.

Cash larceny, on the other hand, involves stealing cash that has already been recorded in the accounts. This can occur after the cash has been counted during a shift or at the end of a business day. An employee might steal cash from the register or from a safe, knowing that the theft will not be immediately detected in accounting records.

Both skimming and cash larceny highlight the ways in which individuals can manipulate cash transactions for personal gain, ultimately leading to financial loss for the organization. Understanding these categories is essential for identifying and preventing cash theft schemes, which can have significant impacts on a company’s financial integrity.