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June 2024
It is the 12th National Awareness Month for the Prevention of Illegal Fundraising.
What is illegal fundraising?
What are the methods of illegal fundraising?
How to prevent it?
Today, let's learn about preventing illegal fundraising
Keep the money bag and protect the happy home!
01
What is illegal fundraising?
According to the Regulations on the Prevention and Handling of Illegal Fundraising, illegal fundraising refers to the act of absorbing funds from unspecified targets by promising to repay principal and interest or giving other investment returns without the permission of the financial management department of the State Council in accordance with the law or in violation of national financial management regulations.
02
A common means of illegal fundraising
Promise high returns
Criminals fabricate the myth of "pie in the sky" and "overnight rich", promising to repay the debt and interest or give other rewards. In order to deceive more people to participate in fundraising, illegal fundraisers often honor the promised principal, interest or returns on time and in full at the initial stage of fundraising, and after the fundraising reaches a certain scale, they secretly transfer funds or abscond with the funds, causing the fundraising participants to suffer economic losses.
Make up fake projects
Most of the criminals who fabricate false projects fabricate various false projects under the guise of responding to national industrial policies and carrying out entrepreneurship and innovation by registering companies or enterprises that appear to be operating legally, and some often organize free tours and inspections to deceive the public's trust.
False propaganda to build momentum
False propaganda and publicity lawbreakers often spend a lot of money on publicity, hiring celebrity endorsements and celebrity platforms, publishing advertisements in major radio and television, the Internet and other media, publishing exclusive interview articles in famous newspapers and periodicals, and hiring people to widely distribute leaflets and make social donations to create false momentum.
Use family affection to deceive
In order to complete or increase their own performance, they even resort to pyramid schemes, and do not hesitate to take advantage of family ties and geographical relations to fabricate lies that they have obtained high returns, and to attract relatives, friends, classmates, or neighbors to join, so that the number of participants spreads rapidly and the scale of fundraising continues to expand.
03
How to prevent illegal fundraising?
01
"Look around, think twice, wait for one night"
"Four Looks"
To look at the legitimacy of financing, in addition to whether the business license of the enterprise has been obtained, it is also necessary to see whether the relevant financial license has been obtained or approved by the financial management department.
Second, look at the content of the propaganda to see whether the propaganda contains or implies "guaranteed, risk-free, high returns, and stable profits and no losses".
Third, look at the business model, whether there is a physical project, the authenticity of the project, the direction of the funds, the way to obtain profits, etc. Fourth, look at whether the main body participating in fundraising is mainly for specific groups such as the elderly.
"Think Twice"
Think about whether you really understand the product and the market.
Think twice about whether the product conforms to the laws of the market.
Think twice about whether your own economic strength has the ability to resist risks.
"Wait a night"
When encountering related investment fundraising publicity, you must avoid being hot-headed, seek the opinions of family and friends first, and delay the decision for one night. Don't blindly believe in publicity, acquaintance introductions, expert recommendations, and don't be tempted by usury to invest blindly.
02
"Three essentials, three unnecessary"
一要理,不要侥幸
There will be no pie in the sky, and what will fall is either a "trap" or a "trap". We must stick to the bottom line of rationality, think about whether we understand it, compare the risk, see if the level of income is realistic, ask your family and friends what they think, and don't be blinded by the gambling mentality and luck psychology!
Second, be steady, don't take risks
High yield means high risk, and it can also be an investment scam, and you will lose all your money if you invest once! It is necessary to reasonably assess one's own tolerance, prudently determine the willingness to take risks, and do not take risks!
三要警惕,不要blind
"Rich returns, attractive conditions, rare opportunities, and limited places" are all likely to be fools, so we must be vigilant, vigilant, and vigilant! Pay more attention, never listen to the wind or rain, blindly "follow the crowd" investment!
03
Be cautious in your investment and beware of illegal fundraising traps
First, don't easily believe in the so-called high-interest "insurance" and high-interest "financial management", high yield means high risk.
The second is not to be impressed by small gifts, do not accept bait such as "interest first", and remember that pie will not fall from the sky.
The third is to purchase financial products through formal channels. We do not sign investment and wealth management agreements with individual employees of banks and insurance, and do not accept any receipts or IOUs issued by individual employees.
Fourth, pay attention to the protection of personal information, pay attention to the risk warnings of illegal fundraising issued by government departments, and report and complain in a timely manner when encountering suspected illegal fundraising.