The scammers and dishonest people are a minority within our community, that are decreasing day by day. When a borrower activates his/her loan, they are under a legally binding contract called arbitration, and the personal information of the borrower will be handed to the investors if they do not pay back on their loans (See more below). However, currently, our repayment rates are above 90% and investors are getting 19% APR on average.

 See here as to why we think investing with BTCJam is such a great idea:
http://blog.btcjam.com/post/75930899818/why-invest-with-btcjam

And here is what happens when someone doesn't pay back:
http://blog.btcjam.com/post/78529756680/what-happens-when-a-borrower-does-not-pay-back-his

To minimize risk and increase returns, read this:
http://blog.btcjam.com/post/75934926878/the-3-rules-of-peer-to-peer-lending-for-investors