$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
crowdfunding Ponzi scheme
Scammers use crowdfunding platforms or create their own to collect funds for fictional projects, using new contributions to pay fake returns to early backers before disappearing.
“pyramid scheme”
↓ 8%Key indicators
Usually targetsInvestors
Often hitsFreelancers and contractors
Common regionUnited States
Last updated2026-04-04
Estimated impact
$6.0K
median reported loss
Typical range$600 – $120K
Recovery rate~8%
Annual reports11,000
Scam breakdown
1
Scammers create compelling crowdfunding campaigns with professional videos and mockups for products that do not exist
2
Some campaigns promise financial returns like investment crowdfunding but operate without regulatory compliance
3
Funds are collected and early backers may receive token deliverables, but the majority of funds are pocketed and the project is eventually abandoned
What to do first
Research the project team independently and verify their identities and past work before backing a campaign
Related terms
fake crowdfunding projectinvestment crowdfunding scamKickstarter PonziPonzi and pyramid schemesWebsiteStableInvestorsTech enthusiastsYoung adultsFreelancers and contractorsTech workers and developersEducators and studentsUnited StatesUnited KingdomGermanyfake crowdfunding projectinvestment crowdfunding scam
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Daniel, 35, a investors, encountered what appeared to be a legitimate ponzi and pyramid schemes situation while using Website. Scammers create compelling crowdfunding campaigns with professional videos and mockups for products that do not exist
Step 2
What happened next was calculated: Some campaigns promise financial returns like investment crowdfunding but operate without regulatory compliance
Step 3
The pressure escalated quickly: Funds are collected and early backers may receive token deliverables, but the majority of funds are pocketed and the project is eventually abandoned
The outcome
Daniel realized something was wrong when campaign promises returns on investment rather than a product, which is unusual for reward-based crowdfunding. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Research the project team independently and verify their identities and past work before backing a campaign Daniel's experience shows why campaign promises returns on investment rather than a product, which is unusual for reward-based crowdfunding and project team has no verifiable track record or online presence outside the campaign are the clearest early warning signs.
How to identify it
- Campaign promises returns on investment rather than a product, which is unusual for reward-based crowdfunding
- Project team has no verifiable track record or online presence outside the campaign
- Campaign has raised large amounts quickly with few backer comments or questions
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Research the project team independently and verify their identities and past work before backing a campaign
- ✓Be cautious of crowdfunding campaigns that promise financial returns unless they are on a regulated equity crowdfunding platform
- ✓Report fraudulent campaigns to the crowdfunding platform and to the FTC
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The FTC took action against iBackPack in 2018 for running a fraudulent crowdfunding campaign that raised over 700,000 USD for products that were never delivered
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Research the project team independently and verify their identities and past work before backing a campaign
- ✓Be cautious of crowdfunding campaigns that promise financial returns unless they are on a regulated equity crowdfunding platform
- ✓Report fraudulent campaigns to the crowdfunding platform and to the FTC
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The FTC took action against iBackPack in 2018 for running a fraudulent crowdfunding campaign that raised over 700,000 USD for products that were never delivered
FTC Consumer Sentinel 2025
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Investors, Tech enthusiasts, Young adults
Geographic concentration
United States, United Kingdom, Germany
Primary channel
Website — Ponzi and pyramid schemes
Why this group is vulnerable
Investors are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The ongoing nature of reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The FTC took action against iBackPack in 2018 for running a fraudulent crowdfunding campaign that raised over 700,000 USD for products that were never delivered
Source notes
- FTC Consumer Sentinel 2025
Frequently asked questions
Common questions about crowdfunding ponzi scheme
How does the crowdfunding ponzi scheme work?+
Scammers create compelling crowdfunding campaigns with professional videos and mockups for products that do not exist Some campaigns promise financial returns like investment crowdfunding but operate without regulatory compliance Funds are collected and early backers may receive token deliverables, but the majority of funds are pocketed and the project is eventually abandoned
What are the warning signs of crowdfunding ponzi scheme?+
Campaign promises returns on investment rather than a product, which is unusual for reward-based crowdfunding Project team has no verifiable track record or online presence outside the campaign Campaign has raised large amounts quickly with few backer comments or questions
What should I do if I encounter crowdfunding ponzi scheme?+
Research the project team independently and verify their identities and past work before backing a campaign Be cautious of crowdfunding campaigns that promise financial returns unless they are on a regulated equity crowdfunding platform Report fraudulent campaigns to the crowdfunding platform and to the FTC
Who is most at risk for crowdfunding ponzi scheme?+
This scam primarily targets Investors, Tech enthusiasts, Young adults. It is most commonly reported in United States, United Kingdom, Germany and typically appears on Website.
Is crowdfunding ponzi scheme still active?+
crowdfunding Ponzi scheme is currently on our watch list. It has been reported across US, UK, DE. Last updated 2026-04-04.
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Help someone avoid this scam.
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