June 2024 is
The 12th National Awareness Month for the Prevention of Illegal Fundraising
What is illegal fundraising?
How to prevent illegal fundraising?
Today, let's take you to find out
How to avoid falling into the trap of illegal fundraising
We're with you
"Keep the money bag and protect the happy home"
①
What are the common methods of illegal fundraising?
One is the promise of high returns. Criminals often make up the myth of "pie in the sky" and "overnight rich", promising investors high returns. In order to deceive more people into participating in fundraising, illegal fundraisers often honor their promised principal and interest on time and in full at the initial stage of fundraising, and when the fundraising reaches a certain scale, they secretly transfer funds or abscond with the funds, causing the fundraising participants to suffer economic losses.
The second is to fabricate false projects. Most of the criminals have registered legitimate companies or enterprises, and under the guise of responding to national industrial policies and carrying out entrepreneurship and innovation, they fabricate all kinds of false projects, and some even organize free tours and inspections to deceive the public's trust.
The third is to build momentum with false propaganda. Criminals often spend a lot of money on publicity, hiring celebrity endorsements, celebrity platforms, publishing advertisements in major radio and television, the Internet and other media, publishing exclusive interviews in famous newspapers and periodicals, hiring people to widely distribute leaflets, making social donations, etc., to create a false momentum.
Fourth, the use of family affection to deceive. In order to accomplish or increase their own performance, some participants in illegal fundraising sometimes adopt methods similar to pyramid schemes, and do not hesitate to take advantage of family ties and geographical ties to fabricate lies that they have obtained high returns, and to attract relatives, friends, classmates, or neighbors to join, causing the rapid spread of the participants and the continuous expansion of the scale of illegal fundraising.
②
What are the common schemes of illegal fundraising?
Step 1: Draw the pie. Illegal fundraisers weave one or more projects that are as "high" as possible. Under the guise of "new technology", "new revolution", "new policy", "blockchain", "virtual currency", etc., a blueprint with rich expected rewards is depicted, and the appetite of fundraising participants is "hoisted", so that they have the illusion that "they cannot be missed" and "the opportunity cannot be missed". Illegal fundraisers will generally draw a big "pie" to attract the attention of participants as much as possible.
Step 2: Build momentum. Use all resources to make the momentum bigger. Illegal fundraisers usually hold various activities to build momentum, such as press conferences, product promotion meetings, on-site observation meetings, experience day activities, knowledge lectures, etc.; Organize collective tours, inspections, etc., and give small gifts such as rice, flour, oil, and phone bills; A large number of real or false "technical certification", "award certificates" and "government approvals" are displayed; Publish some leaders to inspect film and television materials, company leaders and government officials, celebrities group photos; Deliberately choosing the government conference center and auditorium to carry out the event is extremely deceptive in terms of the size of the scene and the high standard.
Step 3: Absorb gold. Find ways to get the money out of your pocket. Illegal fundraisers give participants their first taste of "sweetness" through rebates and dividends, so that they believe that putting money there will not only have a considerable income, but also be safer than putting it in their own pockets.
Step 4: Run. Illegal fundraisers often run away after a period of "gold absorption", or because they were originally "Ponzi schemes" and people go to empty buildings, or because of poor management, the capital chain is broken. Fundraising participants suffered heavy financial losses and even lost their money.
The temptation of illegal fundraising is great,
How can I prevent it?
Firmly remember the "three-step" trick,
Don't be afraid of illegal fundraising tricks to deceive yourself!
③
Recognize the "true face" and distinguish fake investments in three ways
Take a look at who is funded. Generally speaking, the absorption of public deposits must be approved by the People's Bank of China, and is mainly carried out by financial institutions such as banks, and private financial institutions are not qualified to absorb deposits.
Second, look at the interest return. For returns that can often be as high as 10 percent or even 20 percent, we should be vigilant when investing, and always pay attention to the fact that excessive profit promises are often the hidden dangers of risk.
Third, look at the marketing method. We should also be careful of those investment institutions who distribute promotional materials, send rice and oil, and invite tourists to visit on the street, and those who engage in on-the-spot rebate marketing should not be trusted.
④
Debunk the "new tricks" and see through the deep traps
The first is false listing. Individual enterprises distributed promotional materials on the streets, held "promotion meetings" and "stock exchange listing appreciation meetings", and announced that they had been or would be listed on the New Third Board and regional equity markets, and sold or transferred "original shares" to the public. Or intermediaries that have obtained membership in the regional equity market, through the establishment of "equity crowdfunding" financing platforms, under the guise of "listing on the fourth board", "self-directed and self-acting" to publicly promote the so-called "original shares", engage in illegal stock issuance activities, and some also promise fixed income or repurchase at maturity.
The second is platform self-financing. Some P2P online lending platforms establish capital pools in violation of regulations by means of fictitious investment projects, splitting the amount and duration of the target, transfusing blood to the parent company or affiliated enterprises through P2P platforms, setting up their own guarantee companies to guarantee projects, and carrying out fund-raising fraud, and the phenomenon of platform closure or even running away has occurred frequently.
The third is the trading trap. Illegal securities and futures activities are carried out in individual commodity spot, cultural and artwork trading venues, and they often recruit customers through telemarketing and other means, pretend to be investment experts for guidance, attract investors to conduct frequent transactions in private trading systems, and deceive investors.
Fourth, mutual aid scams. The "financial mutual aid" investment platform weaves the myth of wealth to attract investors, or uses virtual currency as a carrier to carry out illegal and criminal activities such as money laundering, and does not operate any industry itself, nor does it generate any cash flow, but the later investors provide funds to the previous investors "mutual assistance", which is actually a scam of beating the drum and passing flowers, and there is a danger of "collapse" at any time.
⑤
Practice "self-defense" to ensure that your investment is on the right track
First, don't invest in areas you're not familiar with. When participating in investment or purchasing wealth management products, you must have a full understanding of the field of investment, have a full grasp of the strength of the invested enterprise, the development prospects and the credibility of the main person in charge, and ask the professionals around you when you have any questions, and consult the authority when necessary.
Second, go to a formal financial institution to buy products. To buy wealth management products, you must go to a formal financial institution, choose an approved product issued by a formal financial institution, and do not believe in the high-yield products sold on some Internet platforms or investment projects recommended by investment companies, let alone the promise of guaranteed principal and interest.
Finally, choose the money management method that works for you. Risk and return go hand in hand, and the higher the return, the greater the risk. Different types of groups should adopt different investment and financial management methods. For example, young people should invest according to their means, allocate assets reasonably, and not invest with liabilities. For the elderly, investment should pay more attention to stability and actively stay away from high-risk products. Of course, when a large amount of investment involving the family is involved, it is necessary to discuss it with family members and not make a blind decision.
Keep your eyes peeled!
Refuse the temptation and say no to illegal fundraising!
Source: Xinxiang County Center for Disease Control and Prevention