To take money or property that doesn't belong to you, especially when you're supposed to be managing it for someone else; to embezzle.
From Medieval Latin 'defalcare' (to cut off, subtract), combining 'de-' (from) and 'falcare' (to cut with a sickle). The meaning shifted from physical cutting to financial cutting—removing money that shouldn't be removed.
The word literally comes from cutting with a sickle—so 'defalcate' is like imagining a dishonest accountant 'cutting away' pieces of money that should belong to their employer, piece by piece until significant sums disappear.
Complete word intelligence in one call. Free tier — 50 lookups/day.