The crowdfunding platform allows creators to bring their ideas to life through the donations of users. However, one user going by the username 'Encik Farhan' managed to expose a loophole.
After donating to certain projects, Farhan would wait for the pledge prize before going on to dispute the payment with his credit card company, thus gaining both the money and the prize.
The scam was spotted by one of the victims, Alex Herberling, who tweeted on Thursday (November 7) that Farhan had pledged $1,000 to her campaign and filed a chargeback.
Encik Farhan pledged $1000 to my campaign and filed a chargeback a few weeks ago, after I said I'd started shipping rewards.— Alex Heberling (@alexheberling) November 7, 2013
She is now hoping to investigate the situation with the payment processor Amazon.
Kickstarter said in a statement (via The Beat): "Upon learning this information, we shut down this person's account, cancelled their live pledges and permanently banned them from Kickstarter.
"Kickstarter and Amazon are working together to investigate this situation. We won't let a single bad apple harm the integrity or goodwill of our incredible community."