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How will you combat the huge amount of fraud?

• BitLendingClub 13y ago
  It's a challenge, but people are willing to take risks at the moment despite there being fraud. We're verifying IDs, addresses, phone numbers (coming soon), social media profiles and we have a comment section with each loan so lenders can ask borrowers for additional information. Our main competitor is btcjam.com and people have funded over 15k BTC worth of loans in the last year. We're hoping to offer a better platform and we're also eventually looking to target a slightly different borrower segment. Our main recommendation is that people don't invest a lot of money in a single loan. Investments should be split up into small chucks and spread out accordingly. If a particular borrower's credit history is lacking, but their loan request is fairly big, then the lenders should probably avoid funding that loan. We're also going to integrate with WoT and integrate all the loans terms with the block chain, so people can monitor lending transactions/credit ratings just by scanning the block chain for our transactions. In the future we're hoping to provide more standard ways to collect on defaults and insure loans.