Which occupational fraud category is characterized by the act of misappropriating assets?

The category characterized specifically by the act of misappropriating assets is asset misappropriation. This type of fraud involves the theft or misuse of an organization’s resources by individuals in a position of trust. Common examples include employee theft of cash, inventory, or other tangible assets, as well as fraudulent reimbursement schemes and skimming.

Asset misappropriation is distinct from other forms of occupational fraud, such as financial statement fraud, which involves manipulating financial reports to present a misleading account of a company’s financial health. Corruption involves employees using their positions to benefit themselves or third parties unlawfully, often at the expense of the organization. Operational fraud typically refers to various fraudulent activities that can occur within business operations, but it does not strictly focus on the misappropriation of assets.

Thus, asset misappropriation is the most accurate description of the fraudulent act of stealing or misusing assets within an organization.