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\xa0 \u201cThe use of one\u2019s occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization\u2019s resources or assets.\u201d 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.\xa0 \xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let\u2019s go startup something today. ________________________________________________________________________ \xa0 For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0\xa0 For Feedback please contact info@tencapital.group\xa0\xa0\xa0 Please , share, and leave a review. Music courtesy of .