Lapping is a method of stealing cash in which an employee steals a customer payment and uses funds from a subsequent customer payment to post to the first customer's account, using funds from a third customer payment to post to the second customer's account, and continuing on in that pattern until a valid account is written off as a bad debt, the perpetrator is caught, the perpetrator leaves the firm, or some combination of those three possibilities.

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Lapping is a fraudulent scheme where an employee misappropriates funds by using subsequent payments to cover up the initial theft, creating a cycle that can continue until detected or resolved by other means.

Lapping Is a Method of Stealing Cash in Which an Employee