Tagged: fraud

The Media Is Missing The Point On Crowdfunding, Indiegogo And The HealBe “Scampaign”

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At this point, I’ll skip the process of reiterating HealBe’s disaster of an Indiegogo campaign in any detail. In short, HealBe launched a campaign for a device called the GoBe that promised to count calories burned during a workout by measuring glucose levels in the bloodstream. It may not even be possible. That’s just one of… Read More

SEC Commissioner Stein Talks Blue Sky, JOBS Act in Speech to NASAA

Commissioner Kara M. Stein BW

In a double header day, SEC Commissioner Kara M. Stein also addressed the North American Securities Administrators Association (NASAA) at their 2014 Public Policy conference in Washington, DC. Introduced by NASAA President Andrea Seidt from Ohio, Commissioner Stein dove right in to addressing the pressing concerns of the NASAA. Blue Sky Review finds it origins… Read More

Two Big Questions For Indiegogo And PayPal On The Heels Of HealBe’s Crowdfunding Debacle

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We’ve been keeping up with PandoDaily writer James Robinson’s (pictured) digging into HealBe’s Indiegogo campaign. It turns out that Robinson’s search is now leading him toward other Indiegogo campaigns seemingly with similar issues. A recent article dives into claims made during a campaign for the TellSpec, a device whose inventors promised that it would be able to count… Read More

Indiegogo’s Reputation May Hinge On Outcome Of GoBe Campaign

GoBe App

Put simply, the significance of automatically calculating calories consumed and burned cannot be overstated. Currently, calorie databases such as MyFitnessPal require manual input, and prove laborious when calculating home-cooked meals or more exotic cuisines. While the utility of food-logging with weight loss has been supported by medical literature, it requires sustained discipline. The ability to record calorie… Read More

Crowdfunding Fraud: How Big is the Threat?

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Crowdfunding is exploding as a new way of attracting funding and financing for individuals, small businesses and entrepreneurs around the world. In 2013 alone the global crowdfunding industry was responsible for between $3 and $5 billion in funding. With the passage of the JOBS Act and the subsequent revision of 80-year-old US securities regulations, crowdfunding… Read More

Game Developer’s Comments At GDC 2014 Present A Crowdfunding Dilemma

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Steve Swink is an Arizona-based game developer and the man behind Scale, a video game that raised over $100,000 on Kickstarter in a round that closed late in 2013. The game looks incredible, by the way. It elicits thoughts of Portal with a bit of an indie spin. The Kickstarter trailer is at the right… Read More

Updated: Is SOAP’s Kickstarter A Scam? It Is A Complete Mess, And Here’s Why

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If you want a case study in how a Kickstarter can go horribly wrong, look no further than the campaign for SOAP, a touchscreen home automation router. The campaign is fully funded despite bleeding almost $4,000 since we caught wind of scam allegations surrounding the campaign this weekend. Assuming the team behind the campaign can make… Read More

Soap Home Automation Router’s Kickstarter Campaign Met With Scam Allegations

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The above comment sums up the general tenor surrounding a currently-running Kickstarter campaign for the Soap home automation router. The device’s campaign promises to deliver an Android-based home automation unit that allows the user to control all of his or her at-home digital devices. The proposal was enticing enough to secure just over $120,000 in… Read More

Beware Of Scammers Posing As Lending Club Reps

ripoff report

Back on February 11th, Lending Club posted an article to the company’s blog discussing online scams. The post is entitled “How to Protect Yourself from Online Scams and Swindles.” In it, Lending Club points out that there are individuals out there using the Lending Club brand in an effort scam people. They provide the following… Read More

AARP Magazine Runs Crowdfunding Feature, Cites Cautionary Letter

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AARP The Magazine recently ran an article on crowdfunding dealing with the possibilities (and perils) of the evolving means of capital formation. Kickstarter, RocketHub and EarlyShares all get mention in the piece alongside Sherwood Neiss of Crowdfund Capital Advisors. Rockethub’s Alon Hillel-Tuch and EarlyShares’s Heather Schwarz-Lopes are both quoted in the article. Neiss predicts that the… Read More

The Crowd Picked Apart This Kickstarter Reject’s Now-Suspended Campaign

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The Rock smartwatch was able to garner almost $40,000 in pledges from crowdfunding backers before Kickstarter finally had to pull the plug on the campaign. The run-up to how that happened should strike fear into anyone looking to pull a fast one on the crowd. The man pictured above is Vak Sambath, the face of… Read More

ASSOB’s Paul Niederer Shares His Approach To Preventing Crowdfunding Fraud

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The competent operation of the crowdfunding platform or portal is essential for the prevention of fraud in equity crowdfunding. Based on my experience with the ASSOB platform we have learned that it is very unlikely that fraudsters would be bothered jumping through all the hoops a competent platform or portal places in the path of… Read More

Infographic: Crowdfunding Successes & Failures

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Top-business-degrees.net has generated an infographic showing some high-profile successes and failures from the world’s most robust crowdfunding marketplaces, Kickstarter and Indiegogo. It examines the top crowdfunding campaigns from Kickstarter and Indiegogo as well as some notable cases of fraud and the outcomes of those campaigns. Click the infographic below for a full-size view. Have a… Read More

#Crowdfunding News Roundup: November 16, 2013

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CrowdCheck Blog | Due Diligence: It doesn’t just protect investors Brian Knight of due diligence service provider CrowdCheck built upon a recent Crowdfund Insider article that explored the circumstances surrounding the Luci project on Kickstarter. Here he explains how due diligence can protect issuers and investors in crowdfunded offerings. Francis, Moran & Associates | Angel investors can’t sit… Read More

Victims Of Backer Scam Vent On Kickstarter Forum, Allege Over 150 Campaigns Affected

Kickstarter K

The same individual backed over 150 projects. We have been in communication with a number of project owners, all of whom have been duped out of money by this scammer. This scam has been going on for months; one project backer lost over $5000, and my team lost $1200. Here’s the sticking point: Amazon /… Read More

LUCI Advanced Dream Inducer Cancelled on Kickstarter, Fraud Allegations Mentioned (Updated 2X)

Luci Dreamer Headset

With only a few days left to go in this crowdfunding campaign on Kickstarter, LUCI, Advanced Lucid Dream Inducer was cancelled after having raised $363,302 on a goal of just $40,000.  Funds raised had reportedly broken the $400,000 mark but as allegations of fraud started to impact the crowdfunding effort backers began to cancel their… Read More

Kickstarter Backer Allegedly Scams Over One Hundred Projects

fraud

Pledge a huge amount of money. Secure the promise of an awesome reward. Wait for the rewards to ship. File a dispute with Amazon Payments. Get your money back. It is a simple scam, and it may have worked for one “Encik Farhan” to the tune of over 100 campaigns. A project creator named Alex… Read More

NASAA’s 2013 Top Investor Threats Include Warning About Crowdfunding Platforms

andrea-seidt-nasaa

Under the direction of Ohio Division of Securities Commissioner Andrea Seidt, the NASAA has recently released an updated list of their top investor threats for 2013. Among them: “unregulated third party service providers,” a category that would include crowdfunding portals. Seidt explained the reason for caution in the wake of the JOBS Act. “With the… Read More

SoMoLend, Ohio Securities Division Hearing Postponed Until January

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SoMoLend and the Ohio Division of Securities have been on a crash course since a notice of intent to issue a cease and desist was filed back in August of 2013. The hearing, originally scheduled for this week, has been postponed until January according to Cinicinnati.com. According to the notice, grievances include allegations that Candace… Read More

The JOBS Act: Misreporting & Setting The Record Straight

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In the wake of legalized general solicitation under Rule 506(c), some media outlets, individuals and pundits have shared information that is not accurate. See this infographic as an example, which appeared on Forbes. That isn’t to pick on Forbes or the creators of that infographic. Small blogs, historic newspapers… various sources at all levels fall… Read More