What is financial fraud involving the misappropriation of funds typically called?

Financial fraud involving the misappropriation of funds is typically called embezzlement. This term specifically refers to the act of wrongfully taking or using funds that have been entrusted to someone’s care. Embezzlement often involves individuals in positions of trust, such as employees or managers, who take money or property for personal use that rightfully belongs to their employer or another entity.

The essence of embezzlement lies in the breach of trust and the legal relationship between the parties. Unlike other forms of theft, which may involve taking someone else's property without consent, embezzlement is characterized by the deceitful intention to convert funds that were originally given to the individual for a specific purpose. This distinguishes it from other criminal acts like burglary, which is entering a building with the intent to commit a crime inside, and robbery, which involves taking property from another through force or intimidation. Theft, on the other hand, is a broader category that encompasses various forms of stealing, but embezzlement is distinct in its focus on betrayal of trust.