What is illegal fundraising: According to the Interpretation on Several Issues Concerning the Specific Application of Laws in the Trial of Criminal Cases of Illegal Fund Raisingof the Supreme Court of People’s Republic of China (Fa Shi [2010] No. 18), illegal fundraising violates the laws and regulations of the national financial management and absorbs funds from the public (including units and individuals)

The manifestation of illegal fundraising: one is promising high returns; one is fabricating false projects; one is using false propaganda to create momentum; the other is using family love to deceive.

Common marketing methods for illegal fundraising: The first step is to draw a “cake”. Illegal fundraisers will weave one or more projects as high standard as possible. The second step is to build momentum. Illegal fundraisers will use all resources to increase the momentum. The third step is to absorb money. Illegal fundraisers will find ways to withdraw the money in your pocket. The fourth step is to run. Illegal fundraisers often run away after a period of “suctioning gold”, or because they were originally "Ponzi schemes", and the capital chain was broken because of poor management.

Measures to prevent illegal fundraising: Four looks: the first look is legality of financing, not only looking at whether the enterprise has obtained the business license, but also looking at whether the enterprise has obtained the relevant financial license or approval by the financial regulators. The second look is the content of the promotion, seeingwhether the promotion contains or implies “guaranteed, risk-free, high-yield, stable earnings without compensation" and other content. The third look is the business model: whether there is anactualproject, the authenticity of the project, where the funds are invested, and the way to obtain profits. The fourth lookis to see whether the main body of participation in fundraising is mainly for senior citizen and other specific groups.

Thinking twice: think about whether you really understand the product and market conditions. Secondly, think about whether the product conforms to market rules. Thirdly, think about whether your own economic strength can resist risks.

Waiting for one night: when encountering related investment and fundraising propaganda, you must avoid being overheated.You should solicit the opinions of your family and friends and delay the decision before one night. Do not blindly believe in trend-building propaganda, acquaintance introduction, expert recommendation, and do not be tempted by high interest to blindly invest.