Employee theft was a $2 billion a year problem in 1972. The first principle of prevention is to reduce temptation in the form of valuable goods that are visible and accessible. Supervisors should know what techniques thieves use to exploit opportunities in the particular type of business they manage such as ways to get stolen property out of the building; confusion, poor management, and wastefulness; places to hide stolen property; and flaws in the accounting system. The opportunity to steal can be limited by establishing controls such as use of surveillance devices, analysis of financial and operating records, and use of locks and control techniques to limit access to stored materials. Finally, the manager should communicate the importance of teamwork to prevent employee theft, and an atmosphere of mutual trust should be developed between employees and supervisors. A study guide is provided. (Author abstract modified)