Donation, reward, and investment campaigns
Crowdfunding fraud looks different depending on the kind of campaign. Donation sites raise money for causes, medical bills, or disasters, and fraud there usually means an invented story or money diverted from the stated purpose. Reward campaigns promise a product to backers, and a project that fails is not automatically fraud unless the creator misrepresented facts or never intended to deliver. Investment crowdfunding is a securities offering conducted through registered platforms under SEC and FINRA oversight, so misstatements there can raise securities issues. Each category involves different rules and different people who might bring a claim.
If you organized the campaign
Organizers accused of misusing funds can face platform action, refund demands, complaints to the New York Attorney General, civil suits, and in serious cases criminal charges such as larceny or wire fraud. What matters most is often how the money was described and how it was actually spent. Keep bank records, receipts, and communications with the beneficiary, and avoid moving the remaining funds or posting public explanations before getting advice, since those statements can become evidence. If the campaign was for someone else and you passed the money along, records showing that transfer are essential. Updates that misdescribe what happened, even with good intentions, can make the situation worse.
If you gave money to a campaign
Report the campaign to the platform first; several major donation sites have their own refund policies for campaigns found to be fraudulent, though the terms vary. A payment card dispute may be another route, depending on timing and how you paid. Save screenshots of the campaign page and its updates, since they can be edited or taken down. A lawyer becomes useful when the amounts are significant, many donors were affected, or the organizer can be identified and has assets. When we talk with you, we examine what was promised, how the funds moved, and whether a regulator, a civil claim, or a criminal complaint is the realistic path.
