Didn't BTCJam requires you to upload a copy of your passport ID card? And they have an international arbitrage too but I don't know if a country's jurisdiction would cover this up.
Basically the higher someone's rating is that means the more he has submitted document for verification or has a good track record of returning the loan. However if someone decided to scam, all BTCjam will give you is an arbitration award that contains all the documents that has been submitted by the person. you will then need to
sue this person at your own will with your own expenses as well
The best part is that the info they received is 80% of the time fake. There are many people who take reputation loans to boost their reputation and eventually scam down the road. BTCJam's support is non existent, I have contacted them several time in a few months but they gave me no response at all.
Not sure where you are gathering this data & it is not true. We actually stopped taking reputation loans months ago as well. We built out a support/fraud team in March of this year to tackle these problems. Maybe you contacted us before that, but we have been very active in these areas you speak about. You should drop us a line at
support@btcjam.com so we can help you out if we missed you some time ago, apologies for that.