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  • Geebo 10:06 am on January 4, 2019 Permalink | Reply
    Tags: crowdfunding, gofundme, New Jersey,   

    NJ proposes crowdfunding scam law after GoFundMe debacle 

    NJ proposes crowdfunding scam law after GoFundMe debacle

    If you’ll recall, you may remember hearing a story in the news about a New Jersey couple who raised close to $500,000 on crowdfunding site GoFundMe in order to help a homeless veteran that they claimed showed them kindness in a time of distress. The story made national headlines and even resulted in the trio being interviewed on several national news reports. Then as the months went by after the story was initially reported it was discovered that most of the story was fake. The man was a homeless veteran but he was talked into the scam by the couple. Now, all three are facing charges of fraud. GoFundMe has stated that there is very little fraud on their platform and have refunded donors to the fraudulent campaign and vow to assist law enforcement when it comes to phony campaigns. Now, one New Jersey legislator is trying to make it so it never reaches that point.

    New Jersey State Assemblyman Ron Dancer has introduced a bill that would increase the penalties for crowdfunding theft in the Garden State. The bill calls for a $500 fine for each fraudulent contribution collected. Considering how many people donated to the fraudulent campaign that could rack up a very hefty fine in no time. The bill also suggests that the money collected through fines could be used to assist New Jersey citizens who are in danger of losing their homes. While the law is noble in its intentions could it have unintended consequences? Could it be applied to failed campaigns on sites like Kickstarter or Indiegogo if the campaign failed to deliver its promised product? If so then the bill would definitely need some fine tuning.

    As far as consumers go, should you be wary of crowdfunding campaigns like this? Absolutely. While GoFundMe maintains that fraud is low on their platform that doesn’t mean it’s non-existent. If a story sounds too good to be true or farfetched it probably is. You don’t have to donate to a campaign just because everyone else is. While it’s important to be charitable when someone is down on their luck it’s just as important to protect yourself from being fleeced by a phony sob story.

     
  • Geebo 9:01 am on July 25, 2017 Permalink | Reply
    Tags: , gofundme, Snopes   

    Hoax busting site Snopes facing financial shutdown 

    Hoax busting site Snopes facing financial shutdown

    The scourge of conspiracy theorists and urban legend believers everywhere, Snopes.com is facing a financial crisis that could result in the website shutting down. Snopes was started in 1994 by the married couple of Barbara and David Mikkelson, who created the site in order to have a resource where people could debunk urban legends. Prior to the internet, urban legends would break out in various pockets of the country and would spread like wildfire with nothing to stop them. Some of these tall tales have gone on to ruin the reputations of prominent regional figures. In 2014, the couple divorced with Barbara Mikkelson selling her half of the site to a digital media corporation and that is where Snopes’ current problems seems to have originated.

    Snopes is accusing this digital media company of cutting off its advertising revenue stream in a power struggle for ownership of the site. According to the website SaveSnopes.com

    Although we maintain editorial control (for now), the vendor will not relinquish the site’s hosting to our control, so we cannot modify the site, develop it, or — most crucially — place advertising on it. The vendor continues to insert their own ads and has been withholding the advertising revenue from us.

    Because of this Snopes is going the crowd funding route by trying to raise $500,000 on the fund-raising site GoFundMe. As of this writing, Snopes has raised close to $350,000 toward its goal.

    If Snopes were to close down, it’s almost a guarantee another site could rise from its ashes. However, none of them would have the cache and credibility Snopes does. Losing Snopes would not only embolden conspiracy theorists and partisan ‘news’ sites, it would also be a great loss of a plethora of investigative information that has had a big hand in trying to prevent ignorance on the internet.

     
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