Startup Funding Espresso – What Is Fraud?

What Is Fraud?

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

Fraud is officially defined as 

“The use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization’s resources or assets.”

Fraud occurs in startups and small businesses and is usually through the action of a founder or employee.

There are five elements of a fraud as follows:

It represents a material fact which is false

That is made intentionally,

Which is believed by the victim

And acted on by the victim

To the harm of the victim.

For one to commit fraud there must be four elements:

Opportunity

Low chance of getting caught

Rationalization in the fraudster's mind that it is okay

And justifications that result from the rationalization.

Investors will find startups are particularly susceptible to fraud due to their lack of information and controls. 

 

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.