Crowdfunding is the latest trend in small business startups. It lets the little guy raise money for his or her big idea without being on the hook to the big banks and their high interest rates.
Unfortunately, for every bright entrepreneur there's a crook. Many crooks have taken to Kickstarter, the world's most popular crowdfunding platform, to make a buck promoting a scam idea, raking in the cash and then running.
Bad news for scammers: An update to Kickstarter might have just made them legally responsible for their actions
Kickstarter works like this: People looking to have their concept funded post a pitch, set a funding goal and hope that people "pledge" money to the project.
"Backers" put up cash in exchange for rewards. The rewards vary by the amount that a backer pledges. While Kickstarter's original concept was focused more around art, the platform's most successful projects have been commercial.