PayPal Will No Longer Protect You Against Crowdfunding Scams
Crowdfunding is one of the riskiest things you can do today. Sometimes it works great and you can help small companies get their great products out to the market, but other times these campaigns are huge failures, taking months to get to market and either holding up or essentially stealing money from consumers. PayPal has always been the easy way to protect your hard-earned money from these scams, but not anymore.
PayPal has recently updated their policies and within that comes a chance with how they treat money spent on crowdfunding campaigns. Essentially, if you spend money on a Kickstarter, Indiegogo, or any other crowdfunding site, you won’t be eligible for Purchase Protection on that purchase. Users will of course have protection on other type’s of purchases, but this change for crowdfunding sites certainly highlights just how risky these campaigns can be.