The best way I see for people to avoid a scam is to ask for enough info to take a credit card out in the borrower's name.
OTOH, the money's in the list, regardless of the default rate. Like TW said, get enough info, then apply for credit in the borrow's name. Better yet, get the info first, then refuse the loan. Zero risk.
I'm in the wrong business. I want to be a banker. You can start with zero cash or a hundred Gs, and even lie, claiming you have the other.
On second though, I'll lose money even if I loan out $20K at 100%/year, for I have a better return flipping musty, rotten, century-old, bug-infested barn wood with lead paint on it. Nix the lead painted wood, for thanks to Bitcoinica I'm only dealin' in non-painted musty, rotten,...