Startup Funding Espresso – Red Flags Indicating Fraud

Red Flags Indicating Fraud

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Most fraud in businesses comes from employees and the management team.

Here’s a list of employee red flags to watch for:

Lifestyle changes show expensive new possessions such as new cars and homes.

Substantial personal debt

Addictions such as gambling or alcohol cause behavior change.

Employees who don’t take vacation or sick leave.

Employees in high turnover areas.

Here’s a list of management team red flags to watch for:

Failure to submit information to auditors.

Business units with weak internal controls.

Frequent changes in bank accounts.

Frequent changes in auditors.

Inexperienced accounting team.

Excessive use of loans.

Excessive compensation plans.

Look for these red flags in your business for potential sources of fraud.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact [e-mail]   

Please follow, share, and leave a review.

Music courtesy of Bensound.