No, that is not true. It def is not a great city to live in and is pretty ghetto in most areas, but its not like a third world country. Believe me, I've been in third world countries worse off than Camden.
Had to work a job inspecting some work being done at 7th and Kaighn area....lets just say its not somewhere I would even choose to be....we had a cop there every minute the crew was there working. we had the gang hanging out in the vacant corner lot drinking and smoking under the tree everyday. The cracked out "working girl" lets say tried to hop into one of the workers trucks that was just sitting in the parking lot, right in front of the cop....he told her to beat it and she walked down the street a half a block before a couple "boys" picked her up and they all went happily to the alley. Not as bad as some people make it out to be, but anyone that has spent any time down there knows its somewhere that you dont want to be in any longer then you have to...and yea traffic signs and lights dont matter.
It used to be rated the worst in the United States but it is now rated 5th. Some of the best on the list I believe they got wrong because of Dover, NJ being rated higher than my town. Here's the link: City Crime Rankings by Population Group