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At the end of the linked MSNBC video, the reporter (Kate Snow) is arguing that nobody is policing the pledged projects and that she could theoretically "go on there and say I'm gonna raise money to make a record album and then get all the money. And, if I never make a record album, nobody knows any different."

Is that really so with Kickstarter?

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Yes. To be listed on a public stock exchange (NASDAQ, NYSE, etc) a company must be extensively audited (e.g., "does this factory really exist? lets go look") and is subject to various regulations (e.g. Sarbox).

When Chuggy G. raises money for an album on kickstarter, you might be surprised to discover that Accenture does not actually audit her.

There are scammers just like on ebay or any other site where money is exchanged, and in a way the nature of the site sort of implies risk because you're essentially investing in the development of a product, it's like a crowdsource VC, but you can filter through the noise and find interesting ideas with inventors who demonstrate their knowledge of the engineering with high quality videos, previous experience and prototypes.

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