Company Claims To Insure Vs. Crowdfunding Fraud

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).
https://www.prunderground.com/tyche-care-announces-the-first-crowdfunding-fraud-warranty/0097424/

https://www.apps.insurance.maryland.gov/CompanyProducerInfo/InsCompanySearch.aspx?NAV=HOME

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About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in accredited investor, balance, Broker dealers, checkbook, Consumer Financial Protection Bureau, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, discrepancies, fraud, Funding Portals, Investments, Jobs, Legislative Intent, review, SEC, Small Business, technology, unfair and deceptive practice and tagged , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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