Crowdfunding fraud involves fake campaigns on platforms likeGoFundMe, Kickstarter, or Indiegogo, where scammers create falsestories to gain sympathy and financial support. These campaigns oftenclaim to help a sick individual, a struggling small business, or aunique invention that never gets delivered.
How This Can Happen to Us:
Scammersmanipulate emotions by sharing touching stories, fake photos, andeven fabricated medical reports. Once donations are collected, theydisappear, leaving donors with no way to recover their money.
Example of Scam:
A woman in New Jerseyfalsely claimed to be raising money for a homeless veteran andcollected over $400,000. Later, it was revealed that she hadfabricated the entire story to scam generous donors.
How to Protect Yourself:
Verify the organizer’s identity and look for credible updates.
Check social media profiles and online presence of the person or cause.
Be skeptical of campaigns without verifiable proof.
Use crowdfunding platforms that have fraud protection policies.