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'Tech entrepreneur took our money but failed to deliver our startup dreams'

bbc.co.uk

31–40 of 67 posts

Re: 'Tech entrepreneur took our money but failed to deliver our startup dreams'

#31
post #25
post #21

Earlier quoted context omitted.

In my country this is only possible if enough funds are in the target account (banks coorporate), it's not a general customer refund...

In the UK if the funds cannot be recovered the bank takes the loss for push fraud. https://www.which.co.uk/consumer-rights/advice/what-to-do-if... It has made banks very nervous about transfers as even payments to a legitimate business can be part of a a fraud (e.g. buy gold and hand it over to the fraudster for "safe keeping") and people have complained they have had problems making legitimate transfers.

It seems unfair to other customers of the bank to require the bank to "return" 75% of the money.

This should be a matter for business insurance.

Re: 'Tech entrepreneur took our money but failed to deliver our startup dreams'

#32

The best thing about tech is that technology becomes a commodity very quickly. Now you don't need to pay huge sums of money to these consultant grifters any more as now AI tools like Cursor, Windsurf, Devin, Bolt, Lovable and Replit can build these apps and websites for you almost for free. I nearly signed off a six figure deal for someone to make an app for us and we instead went down the AI tools route after some e…

AI vibe coders are just another stream of frauds.

Re: 'Tech entrepreneur took our money but failed to deliver our startup dreams'

#33
post #8

Earlier quoted context omitted.

I whole heartedly disagree. This guy is clearly a crook, I feel horrible for the woman but this is basic B2B contracts. Banks shouldn’t be the arbiter of B2B contract terms.

I am very curious about who’s downvoting this; do people really think it’s the bank’s responsibility?

My understanding is that when you transfer large sums (such as 30K) to an overseas account for the first time, the British bank is required to block it and ask you questions.

The first time I transferred money to an overseas account in my name, the bank blocked the transfer for a day until I gave them proof that I was the owner of the account, what I was doing with the money and that I wasn’t being scammed.

Re: 'Tech entrepreneur took our money but failed to deliver our startup dreams'

#35

I know a couple of people who have sort of done that, including one person who made an app to view all books in all libraries of Delhi. He bought a nice sedan with his seed money and bragged about it. (probably worth a few lakhs easily, not like a high end one but better than what I had cause I had just graduated and was interning)

>app to view all books in all libraries of Delhi

Is this an example of a scam or a legit app? Sounds nice but not profitable.

Re: 'Tech entrepreneur took our money but failed to deliver our startup dreams'

#36

I never get why these types always end up running such naked scams - he’s clearly got a gift for sales, with a decent technical founder to back him up, they could be rolling in dough without failing to deliver the actual product

One issue is agencies can have vague contracts because customers did not have a good grasp of what they actually needed, start increasing scope in subtle ways. For example, you deliver a feature and during CAT they find a way to inject new requirements as if they were defects.

These agencies usually don’t have lawyers, so new contracts are full of exploitable holes. You say “we’ll build an e-commerce app with inventory management”, without specifying exactly what inventory management means, your client will start experimenting on your dime and can easily make it seem like it’s your fault. The larger the client, the worse this becomes.

You should always, always make your contracts as specific as possible, but this requires consulting work to nail down requirements before a contract is finalized, and that has a cost, but clients don’t value this and want you “the expert” to magically fill in the blanks in their ideas like an LLM, for free.

Another issue is your team. You might be very competent, but your team might not, hiring is hard. I once had to fire half of my team and build a 6 month client project in 1 month at great cost to my work / life balance because they were just unable to make meaningful progress. Granted, my leadership was not top notch there (being too busy to check on progress and trusting standups is a bad strategy) and I learned a lot, adjusted accordingly.

These are a few counter examples, but I still believe if this is a pattern then you’re a crook.

Re: 'Tech entrepreneur took our money but failed to deliver our startup dreams'

#37
post #33

Earlier quoted context omitted.

I am very curious about who’s downvoting this; do people really think it’s the bank’s responsibility?

My understanding is that when you transfer large sums (such as 30K) to an overseas account for the first time, the British bank is required to block it and ask you questions. The first time I transferred money to an overseas account in my name, the bank blocked the transfer for a day until I gave them proof that I was the owner of the account, what I was doing with the money and that I wasn’t being scammed.

These are for personal bank accounts. Business banking is different.

Re: 'Tech entrepreneur took our money but failed to deliver our startup dreams'

#38
Theme: normal people who know nothing about technology "have an idea for an app" with no clue what that actually entails.

It's a shame they got swindled, but the company had totally unrealistic proposals. I bet these people scoffed at quotes from legitimate shops. How so many people will invest their life savings without doing much research is astonishing.

These are the same people who will now pay for AI slop.

Re: 'Tech entrepreneur took our money but failed to deliver our startup dreams'

#39
post #25

Earlier quoted context omitted.

In the UK if the funds cannot be recovered the bank takes the loss for push fraud. https://www.which.co.uk/consumer-rights/advice/what-to-do-if... It has made banks very nervous about transfers as even payments to a legitimate business can be part of a a fraud (e.g. buy gold and hand it over to the fraudster for "safe keeping") and people have complained they have had problems making legitimate transfers.

It seems unfair to other customers of the bank to require the bank to "return" 75% of the money. This should be a matter for business insurance.

Small businesses will often not have business insurance, and private individuals will not.

I doubt insurance covers this sort of thing though.

ti is quite annoying getting "is this a fraud?" warnings on every transfer - even small amounts to my kids!

Re: 'Tech entrepreneur took our money but failed to deliver our startup dreams'

#40
post #37
post #33

Earlier quoted context omitted.

My understanding is that when you transfer large sums (such as 30K) to an overseas account for the first time, the British bank is required to block it and ask you questions. The first time I transferred money to an overseas account in my name, the bank blocked the transfer for a day until I gave them proof that I was the owner of the account, what I was doing with the money and that I wasn’t being scammed.

These are for personal bank accounts. Business banking is different.

Small business accounts are covered by the same rules.
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