The Fraud
How about that great snowblower the company bought to clear sidewalks and parking for customers! Employee Joe Schmo decided it was better to "borrow" the boss's new tool to do his own driveway than to buy or rent one of his own.
And while doing his driveway, his neighbors wanted to hire him to do theirs as well. Why not? So Joe, the budding entrepreneur, ran that thing all weekend, using up all the fuel and eventually breaking the machine. There was no way the boss could clear the sidewalk and parking for his business Monday morning as he couldn't get that new snowblower started.
The Flaw
Trusting employees. Leaving keys or easy access to valuable equipment. No formal policy stated or enforced.
The Fix
Set strict policies and limits for employees and enforce them. Physically secure valuable equipment. Trust . . . but verify!