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Why is it said that illegal fundraising has a strong financial risk

Why is it said that illegal fundraising has a strong financial risk

  • Categories:News Center
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  • Time of issue:2018-08-20 00:00
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(Summary description)Why is it said that illegal fund-raising has a strong financial risk?

Why is it said that illegal fundraising has a strong financial risk

(Summary description)Why is it said that illegal fund-raising has a strong financial risk?

  • Categories:News Center
  • Author:
  • Origin:
  • Time of issue:2018-08-20 00:00
  • Views:

Why is it said that illegal fundraising has a strong financial risk


Why is it said that illegal fund-raising has a strong financial risk? First of all, illegal fund-raising is illegal. It will seriously damage the real interests of the people, disrupt the normal economic and financial order, and endanger social stability. We must recognize illegal fund-raising behavior and stay away from illegal fund-raising. So, what is illegal fundraising?


1. The definition of illegal fundraising


Illegal fundraising is the act of absorbing funds from the public (including units and individuals) in violation of the national financial management laws and regulations.


2. The harm and loss of illegal fund-raising


Illegal fund-raising is unsustainable. After criminals gather funds through deception and squander, waste, transfer or illegally occupy it, it is difficult for participants to recover the funds. In addition, illegal fund-raising seriously interferes with normal economic and financial order and can easily cause social risks.


According to my country's relevant laws and regulations, illegal fund-raising is not protected by law, and participation in illegal fund-raising is at your own risk.


3. Common methods of illegal fundraising


One is to promise high returns. Criminals fabricated the myth of "pies falling in the sky" and "being rich overnight" and promised high returns for investors. In order to defraud more people to participate in fundraising, illegal fundraisers often fulfill the promised principal and interest in full and on time in the initial stage of fundraising. After the fundraising reaches a certain scale, they secretly transfer funds or abscond with funds, causing the fundraising participants to suffer economic losses.


The second is fabricating false items. Most lawbreakers use the guise of responding to national industrial policies and launching entrepreneurial innovations by registering legal companies or enterprises to fabricate various false projects, and some even organize free tours and inspections to defraud the public.


The third is to create momentum with false propaganda. Criminals often spend huge sums of money in publicity. They hire celebrity endorsements, celebrity platforms, publish advertisements in major radio, television, Internet and other media, publish interview articles in famous newspapers, hire people to widely distribute leaflets, make social donations, etc. False momentum.


The fourth is to use family affection to deceive. Participants of some types of illegal MLM fund-raising, in order to complete or increase their own performance, they do not hesitate to use family affection and geographical relationship to fabricate their own high returns lie, attract relatives, friends, classmates or neighbors to join, so that the participants spread rapidly, and the scale of fund-raising continues. Expand.


4. How can consumers stay away from illegal fundraising


1. Verify qualifications and improve self-protection awareness


When purchasing insurance products through formal channels, try to do "three checks and two cooperations" during the insurance purchase process, that is, to check personnel and products through official channels such as the official websites of insurance companies, customer service hotlines, regulatory agencies, and industry agreement websites. , Check the documents, verify whether the salesperson is an insurance company salesperson, whether the product sold is an insurance company product, whether the documents used are formal documents issued by the insurance company; actively cooperate with the insurance company in the transfer and payment of fees and telephone return visits .


2. Read the contract carefully and confirm the product attributes


When signing an insurance contract, consumers must carefully read the content of the insurance contract, confirm the detailed terms and important information of the insurance product (such as insurance liability, payment method, underwriting company, etc.), to prevent false and real. After applying for insurance, you can check the authenticity of the insurance policy by dialing the unified customer service number of the insurance company, logging in to the official website, or going to the counter of the insurance company.


3. Consume rationally and not be confused by "guaranteed capital and high return"


When consumers buy financial products, they should understand that investment risk is directly proportional to investment income. Don’t blindly believe in the salesperson’s promise of “guarantee capital and high return”, and purchase financial products through formal sales channels according to their actual needs and risk tolerance. .


"Wealth management products" that use high-yield as a selling point may be suspected of illegal fund-raising. Once involved, they may lose their money. In order to avoid being deceived, it is recommended that consumers do not trust "surrender wealth management" and do "three rejections":


ØRefusing to believe in high interest rates“financial management”and high returns promised in the name of insurance companies;


"Oslash; refuse to be impressed by gifts, "rebate first" and other baits;


Ø refuses to sign investment and financial management agreements with sales personnel in their personal names and sales personnel to issue receipts in their personal names.


4. Protect personal information, do not easily show the insurance policy and ID to others


The insurance policy is a valuable document, and the personal ID is a personal identity certificate. Please keep it properly. Do not easily show it to others or give it to others. Pay attention to protect personal information. Beware of personal information leakage or being induced by criminals to participate in illegal fund-raising.


5. Improve risk awareness


Illegal fund-raising is not protected by law, and participation in illegal fund-raising activities is at your own risk. In the case of "financial management" "insurance" products in the following situations, be sure to be vigilant:


One is under the guise of “watch ads and earn extra money”“consumption rebates”;


The second is under the guise of overseas investment in equity, options, foreign exchange, precious metals, etc.;


The third is under the guise of investing in the elderly care industry to obtain high returns or "free" elderly care;


The fourth is under the guise of private equity investment and partnership establishment, but does not go through the business registration of the enterprise;


Fifth, it is under the guise of investing in virtual currency, blockchain, etc.;


Sixth, under the guise of “poverty alleviation”“mutual assistance”“charity” etc.;


Seventh, it distributes advertising leaflets on streets, shopping malls, supermarkets, etc.;


Eighth, it recruits the elderly by organizing inspections, tours, lectures, etc.;


Nine is the "investment, financial management" company, website and server located overseas;


Tenth, it is required to pay investment funds in cash or to personal accounts or overseas accounts.


To stay away from illegal fundraising, we must first identify illegal fundraising. Only by knowing what is illegal fundraising can we Keep yourself from being deceived.


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