Beware of chess related crowdfunding projects

Beware of crowdfunding projects on platforms like Kickstarter, Indiegogo, GoFundMe, SeedInvest or elsewhere.  If something sounds too good to be true maybe it isn't.

First, a bit of background… crowdfunding is a way to raise money for a creative project, new product, business idea or personal cause. Startups, small businesses, nonprofits, and everyday people use crowdfunding platforms to help them raise money to launch a business or product or support their personal cause.  This can be a good thing, however, it also can be used to commit fraud.

All crowdfunding platforms are different and you should be aware of the risks before funding any particular project:

• There is often no guarantee the project will be successful
• You may never receive what the project promised you
• Your money will likely not be refunded even if the project fails to deliver any of what it promised you

The following tips may help you avoid being a victim of crowdfunding projects:

1. Do not assume the project has been vetted.  Just because a project appears on a website you know and trust, do not assume the website is endorsing or verifying the project or team members in anyway.
2. If you want to donate money to a cause, start with other resources or fundraisers. Look to government agencies and nonprofit organizations that are offering support for the same cause or for victim relief.
3. Stay local and safe. Give to people you know directly. If your friends post something on social media, talk to them offline to find out what they know about the campaign and its validity before donating.
4. Understand the difference between crowdfunding sites. Each site has its own set of rules, policies, and vetting procedures. It can be helpful to know these ahead of time to determine how they are protecting consumers from potential fraud.
5. Know what the funds are being used for. If the description of where your funds are going to go directly is not clear, this can be a red flag.
6. Use a reverse photo search. Often, photos that appear in crowdfunding scams are not real and do match the “victims” or project team members. These may be stock photos or stolen from social media and will not correlate to the crowdfunding campaign.
7. Find information on the organizer. Crowdfunding campaigns should provide information on who is organizing it. You can look this person up online to determine their validity.  It should be a red flag if an organizer insists on being anonymous and you can’t find information about them.  Don’t assume the organizer is who they say they are unless you can independently verify them.
8. When donating to support an invention or business project, understand the parameters. Find out if you get a refund if the project does not get completed. Confirm production status through something other than a mere 3D photo, and understand exactly what you are fundraising for. You are often not paying for a finished product, but to support a product or invention coming to fruition.
9. Are the goals realistic or achievable?  Some projects may make big claims and show elaborate marketing material.  Sometimes they show non-functional prototypes or photos and videos that have been enhanced or edited to make it appear to be functional.

Another thing is never to back something if you can't afford to lose the money.