There’s a company that claims to be insuring donors against crowdfunding fraud.
It’s website says that: “If a campaign you back turns out to be fraudulent, [they] will refund each dollar you lost.”
The premium is cheap, $10 for 1 year of protection.
The website says it covers campaigns on most large crowdfunding platforms, including Kickstarter, Lending Club and Prosper.
If you are defrauded, you file your claim online. The insurer then says: “We verify the fraud claim and then pay you back each dollar you lost.”
The question that does not seem to be answered is what does it take to “verify” the fraud claim?
BTW, this company does not appear to be licensed in Maryland.
(No endorsement implied).