Skill 1: Identify a legitimate financial license

The financial industry is a franchise industry and must be licensed for operation. The commonly known financial license refers to a permit issued by the People's Bank of China, the China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission for relevant institutions to engage in specific financial businesses approved by the national financial regulatory authorities. The financial businesses that require permission to conduct mainly include banking, insurance, trust, securities, futures, financial leasing, public funds, third-party payments, etc.

Skill 2: Recognize common investment traps

Illegal fundraising criminals usually use the following methods to deceive the public and achieve the purpose of illegal fundraising:

① Decorate the company's facade and create a false impression of strength. Criminals often establish companies and handle procedures such as business licenses and tax registrations, which may seem legal but lack financial qualifications. These companies either have high-end and luxurious offices, or invest heavily in packaging and promotion through various media and even CCTV, or hold promotional events and knowledge lectures in high-end venues (such as the People's University of China), inviting celebrities, scholars, and officials to stand up and promote themselves, displaying photos with leaders and various awards, which are more deceptive.

② Fabricating investment projects to dispel public doubts. From the past forms of agricultural, forestry and mining development, private lending, real estate sales, original stock issuance, franchise operation, etc., it has gradually upgraded and packaged into various wealth management projects such as investment and wealth management, financial mutual aid and wealth management, overseas listing, private equity, etc., and promised right-hand guarantee, buyback, high return, etc.

③ Confusing investment concepts is difficult for ordinary people to judge. Criminals falsely claim listing on local stock exchanges as listing, and confuse listing on the US OTCBB market with listing on NASDAQ; Some use new terms such as electronic gold, investment funds, and online forex trading to confuse the public, falsely claiming to be new investment tools or financial products; Some use new business models such as monopoly, agency, franchise chain, consumer value-added rebates, e-commerce, etc. to deceive the public into investing.

④ Promise high returns and fabricate the myth of 'getting rich'. High interest temptation is the only way for all fraudsters to deceive the public. Criminals initially cash in the principal and interest of the early investors on time and in full, then use the money of later investors to cash in the previous principal and interest. After reaching a certain scale, they secretly transfer funds and flee with the money.

Skill 3: Be vigilant when encountering these 11 situations

① Under the guise of investing in the elderly care industry, which can yield high returns, or booking beds and depositing membership fees, which can generate income for elderly care;

② Under the guise of private equity investment or partnership enterprise, but without applying for business registration;

③ Under the guise of "watching advertisements, earning extra income", "consumer rebates", "charity", "mutual aid", "virtual currency", "blockchain", etc;

④ Under the guise of investing in overseas equity, options, foreign exchange, gold, futures, etc., especially encouraging the development of others and giving commissions, some hold "investment" promotion conferences in high-end hotels overseas such as Hong Kong, Macao, Taiwan, and Southeast Asian countries;

⑤ Clearly beyond the scope of business registered by the company, especially without the qualification to engage in financial business;

⑥ The company's website and server are located overseas or the company's senior executives are foreigners and conduct false publicity;

⑦ The company's website has not been officially registered, or frequently changes website names or investment projects;

⑧ Require payment of investment funds in cash or transfer to personal or overseas accounts;

⑨ Promising ultra-high returns, especially promising "static" and "dynamic" returns;

⑩ Offering gifts to attract elderly people through organizational inspections, tourism, lectures, and other means;

⑪ Set up stalls and points in crowded and gathering places such as streets, supermarkets, and shopping malls, and distribute advertisements for "financial products", especially targeting middle-aged and elderly people as the main target audience.

Skill 4: Remember the advice at the end of the article

① Strengthen financial knowledge learning, familiarize oneself with investment business, and not blindly trust others' marketing recommendations;

②  Adhere to rational investment, enhance risk awareness, and choose investment projects that match one's own risk tolerance;

③  Enhance vigilance and identification ability towards illegal fundraising, fraud and other illegal activities, choose legitimate investment companies and channels, be alert to recommendation activities on various social platforms, and beware of downloading apps or investing in related products through websites with unknown sources;

④ Remember that financial investment inevitably comes with risks, and firmly resist gimmicks such as "guaranteeing capital and returns" and "high-yield risk-free" temptations.