Theft can be classified as stealing material items, submitting time sheets for hours that were not worked, embezzling funds and any other form of employee fraud. The average company loses as much as 5 percent of its annual revenue to fraud, according to the Association of Certified Fraud Examiners website. Only 2.6 percent of employee fraud cases are caught by company monitoring systems, while 40.2 percent of fraud cases are revealed through a tip from staff members to management.