Beware of These 10 Investment and Wealth Management Schemes That Could Be Too Good to Be True!
Nowadays, the general public is on the lookout for investment and wealth management channels, but the options available domestically are limited, and legitimate financial products may be deemed to offer too low a return. The stock market, on the other hand, is often characterized by wild fluctuations, which many are hesitant to invest in due to a lack of understanding. This situation provides ample opportunities for illegal fundraising scams to take advantage. So, how can ordinary people discern illegal fundraising amidst a myriad of confusing promotions and vague introductions?
You can judge from the following situations:
The first category includes schemes that use "earning extra money by watching ads" or "consumer rebates" as a cover. Be particularly cautious of fake websites that charge fees to become premium members, promising high monthly earnings from watching ads or enticing consumer rebate models where you get back exactly what you spend.
The second category involves schemes that use the guise of investing in foreign equity, options, foreign exchange, precious metals, etc. What is the main characteristic of these? It's that most people do not understand them. The less people understand, the easier it is for scammers to promote them, as there's a saying, "fear of the unknown." They will explain these options and precious metal transactions in a very professional manner, making you feel that it's high-end, and eventually, you fall into the trap.
The third category is about schemes that promise high returns or "free" elderly care by investing in the elderly care industry. Always remember that "there's no such thing as a free lunch." These types of investments, which promise high returns from the elderly care industry, are generally targeted at middle-aged and older adults, exploiting their concerns about retirement and gradually leading them into a carefully designed trap.
The fourth category involves schemes that use private equity participation or partnership in business as a cover but do not go through the proper business registration process. If it were a genuine equity investment or company establishment, following the relevant national laws and regulations would be fine. However, if they do not register, it's clear that there's something fishy going on. No matter how good they sound, be especially cautious.Category five involves schemes that use "virtual currency," "blockchain," and similar terms as a cover. As we all know, in the past few years, "blockchain" within the realm of virtual currencies has seen an extraordinary surge, increasing by tens of thousands of times. This is a windfall that ordinary people can only dream of encountering. Although many may not understand blockchain technology, those who frequently use the internet might be aware of its promising future. Due to this particularly lucrative effect, a variety of virtual currencies have begun to proliferate, but most are nothing more than scams.
Category six pertains to schemes that use "poverty alleviation," "charity," "mutual aid," and the like as a guise. It is quite easy for these to deceive people because the majority of our citizens are kind-hearted and simple, thinking that they can make money on one hand and do good deeds on the other. This makes them extremely confident in such methods, even vigorously promoting them to friends and relatives, unknowingly aiding the fraudsters.
Category seven involves distributing advertisements on the streets and in shopping malls. Caution should be exercised with these as well. While many are merely business promotions, such as real estate sales, some mix in among them, promoting so-called miraculous products. They talk to you in such a way that you become fascinated, and eventually, you become very convinced about their projects or business models, leading you to follow along.
Category eight targets elderly people through organized tours, lectures, and other activities. Most elderly individuals possess the fine Chinese tradition of thrift and frugality, which is particularly susceptible to exploitation by scammers. They use discounts to organize tours and lectures to gain the trust of middle-aged and elderly people. Once trust is established, the next steps become much easier. Therefore, it is best to ignore various lectures and the like.
Category nine involves "investment," "financial management" companies, websites, and servers located overseas. Many financial platforms advertise high returns and strong strength, claiming to have brought investors substantial profits. However, these websites cannot be found in the domain name information system, and their servers are set up overseas to evade scrutiny by national regulatory authorities. Such websites can be easily identified as fraudulent without further consideration.
Category ten is when investments are required to be made in cash or paid into personal or overseas accounts. Be wary of such situations. If it's a bank transfer, it can be traced, but cash payments are difficult to track. If money is sent overseas, it becomes even more complicated to investigate. These are all carefully designed steps by the scammers, and one must be highly vigilant.
If you encounter any of the above ten categories, take them very seriously to avoid falling into the traps of illegal fundraising and financial scams!
