What could be the consequence of failing to report a large, unwarranted increase in your paycheck?

The most suitable answer in this scenario is larceny. Larceny generally involves the unlawful taking of someone else's property with the intent to permanently deprive the owner of it. In the context of a large, unwarranted increase in your paycheck, failing to report this discrepancy can indicate that you are intentionally benefiting from funds that do not rightfully belong to you. By not reporting the increase, you are allowing the situation to continue, which can be deemed as an act of larceny.

This situation demonstrates a clear intention to keep money that has been mistakenly granted to you, as opposed to other terms which may involve more specific legal definitions or contexts. Misappropriation, for instance, generally involves the improper use of funds or property that one was entrusted to handle, whereas theft may imply a broader context of stealing without the specific condition of being entrusted with the property initially. Therefore, larceny aligns more closely with the act of knowingly retaining earnings that one has not earned.