Correspondence: Gregory L. Krippel, Department of Accounting, Finance and Economics, E. Craig Wall Sr. College of Business, Coastal Carolina University, PO Box 261954, Conway, SC 29528-6054, USA. Tel: +1 843 –349 2643; Fax: +1 843 –349 2455; E-mail: krippel@coastal.edu

¹is an associate professor of Accounting in the Department of Accounting, Finance and Economics at Coastal Carolina University in Conway, South Carolina, and his current research interest is fraud in the hospitality industry. He received his PhD in Accounting from Florida State University.

²is an associate professor of Accounting and Department Chair of the Accounting, Finance and Economics Department at Coastal Carolina University in Conway, South Carolina, and her current research interest is fraud in the hospitality industry. She received her DBA in Accounting from Louisiana Technical University.

³is an assistant professor of Finance in the Department of Accounting, Finance and Economics at Coastal Carolina University in Conway, South Carolina, and his current research interest is fraud in the hospitality industry. He received his PhD in Finance from Florida State University.

⁴is currently a masters in Business Administration graduate student at Coastal Carolina University in Conway, South Carolina, and her current research interest is fraud in the hospitality industry.

⁵is the Finance Director of the City of Mansfield, OH, USA, and she has a bachelors in Business Administration from Coastal Carolina University. Her current research interest is the efficient and effective financial operations of a city.

Received 8 April 2008; Published online 4 August 2008.

Abstract

This longitudinal, empirical study of the Myrtle Beach, South Carolina, tourism industry examines employee theft and employers' strategies for detecting it. An extensive questionnaire collected information from tourism managers of restaurants, hotels, golf courses, and attractions. Over 50 per cent reported one or more incidents of employee theft; the dollar value of the thefts more than doubled from 2000 to 2005. Perpetrators were typically younger males who frequently targeted cash and inventory. They were caught through internal controls, special investigations, and whistleblowers. Tourism managers may need training in more sophisticated control strategies to combat the high-dollar theft threat.