Attorney General: Crowdfunding can be dangerous

New York Attorney General Eric Schneiderman, center, speaks during a news conference, Thursday, Aug. 21, 2014 in New York. (AP Photo/Bebeto Matthews)

BUFFALO, N.Y. (WIVB) — A popular new way of getting businesses off the ground or raising charitable funds isn’t always the safest way to spend your money, according to Eric Schneiderman, New York’s Attorney General.

Schneiderman said the sites aren’t regulated, and can lead to loss of money or even identity. He says anybody can create a crowdfunding project and ask for anything for help with medical expenses, a new community project or even creating a new product.

The advice of Schneiderman is simply to know the website you’re on. Each has different policies and each project can have different rules.

“Credible projects will have an established web and social media presence.  Check the campaign creators social media accounts to confirm identities and real world connections,” Schneiderman said. “When considering whether to make a donation or not, you have to know what protection a crowdfunding website offers.”

He also recommended not giving out personal information like social security numbers or your birth date. provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Commenters who violate these terms, including use of vulgar language or racial slurs, will be banned. Please be respectful of the opinions of others. If you see an inappropriate comment, please flag it for our moderators to review. Note: Comments containing links are not allowed.

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