This conceptual paper provides a decision-making framework that enhances our understanding of how Do-It-Yourself (DIY) laboratory entrepreneurs execute ethical standards by dismissing fraud. Although our theory assumes that most DIY entrepreneurs are by nature ‘ethical’, we discuss how the unique nature of DIY laboratory entrepreneurship provides risks for fraud. Drawing on three ethical theoretical lenses, utilitarianism, deontology and egoism, our paper proposes different potential causes of fraud and motivates further analysis about why DIY laboratory entrepreneurship is an important context for the study of fraud. We contribute to theory and government policy by providing a conceptual framework that explains how entrepreneurial choices lead to three main types of fraud based on the dominant decision pathways. Further research and practical implications are discussed.