ScryptAsic you are confusing fraud with bankruptcy

Fraud is the intentional use of deceit a trick or some dishonest means to deprive another of his or her money.
It absolutely sounds like you were the victim of fraud with some of your prosper loans. You problem in proving that is that prosper loans are more or less high risk by definition. It is primarily used by people who have been cut off from the regular banking industry due to bad credit high debt. This makes fraud hard to prove but I understand why you are rightfully pissed.

You said such individuals should be labeled scammers. This is the appropriate response to such behavior.
This used to happen when someone declared bankruptcy. Once upon a time when people declared bankruptcy their debts were wiped clean, their hard assets seized, and their credit was ruined. This is the proper response. Label them a scammer/deadbeat and cut them off from future debt and the ability to default on others. The only role for the state should be gross criminal fraud and the bar for intervention must and should be very high.

What many fail to realized is that our entire economic system is fraudulent. You worked very hard for your money and are justifiably very angry when someone walks away with it after making only three payments. But this is small time fraud. Any financial entity can essentially create the same money you worked so hard to collect and fund that same prosper loan. However, instead of having to work for it like you did they can essentially just create it almost for free. Each time they do so they are stealing from me you and everyone else. This theft is no different from the theft of the deadbeat prosper lender who takes out a loan with the intent of defaulting right away.

Fractional reserve allows financial interest to load us up with student debts, credit card debts, car loans, prosper loans. There is no limit to the amount of debt they can create. Each created debt steals a little more from the productive members of society who actually produce and earn their living.

The only risk such finance faces is default. If a mistake is made and money is lent to someone without enough assets to seize finance could face a loss. This is why we are seeing and will continue to see a gradual tightening of the noose around the indebted masses.

Before 1976 all debt could be discharged when you were bankrupt. First non profit student loans were exempt from protection in 1976. Then in 1986 private student loans were exempt from bankruptcy. In 2005 chapter 7 bankruptcy protection was denied for anyone earning over the median income in their state regardless of how much debt they were in. Now in 2014 case law is gradually being created allowing 25% automatic wage garnishments for all debts. The rules are being rewritten and the masses are gradually being led into slave pens built using money that was stolen from us all.  

The future trend is obvious. Gradual and continued tightening of debt slavery. Options and the ability to free yourself will become more and more limited. When the masses go through periodic mini revolts the financial interest will shift gears for a few years and back their "people" in the other party. Then we can expect cycles of higher taxes government bailouts and asset seizures from the "rich people" who can afford to fund prosper loans and are not paying their "fair share". Back and forth it will go with ever higher taxes ever higher debt and growing debt slavery until the system either collapses or maybe just maybe we evolve into something better.