China Banking and Insurance Regulatory Commission: Be wary of investment pension and housing pension financial fraud

Recently, some criminals have made false propaganda in the name of investment for retirement, housing for retirement, etc. The essence is to illegally absorb social funds, disrupt financial order, and infringe on the legitimate rights and interests of consumers. The Consumer Rights Protection Bureau of the China Banking and Insurance Regulatory Commission issued the third risk warning for 2021, reminding consumers to increase their awareness of risk prevention, stay away from illegal financial activities, and protect their own rights and interests.

One of the techniques: defrauding pension money in the name of investing in pensions

Some criminals, in the name of investing in pensions, promise high interest rates and provide reserved pension beds, reserved pension rooms, etc. services, illegally soliciting funds from elderly consumers.

Design scams based on the characteristics of the elderly. Criminals take advantage of the elderly to seek pension security and lack awareness of fund-raising fraud. Under the guise of investing in elderly care and selling elderly products, they often appear in places where the elderly gather, such as parks, supermarkets, communities, etc., and continue to instill financial pensions into the elderly population. , new investment and other concepts.

Use small favors to gain favor and reduce the vigilance of the elderly. Criminals deliberately gain the trust and favor of the elderly by organizing tours, visits, lectures, and giving gifts. After the elderly lower their vigilance, they take the opportunity to kidnap them morally and make false propaganda, with the ultimate goal of defrauding the elderly of their money.

Attract seniors with promises of high returns. Criminals commonly use rhetoric such as promises of high dividends, guaranteed capital and high interest rates, and scheduled elderly care services to trick the elderly into investing in so-called "elderly care service" projects. Charges come in various forms, such as "VIP cards," "membership fees," "prepaid fees," etc. These institutions are unable to provide the promised elderly care services. After obtaining funds, they operate and flow opaquely. They have a high risk of raising funds and escaping. Some elderly people have their pension money defrauded by criminals.

Tip No. 2: Use the name of housing for retirement to defraud the elderly’s funds

What the criminals call “housing for retirement” is false. Formal housing-based pension insurance refers to reverse mortgage pension insurance for the elderly, which is an innovative commercial pension insurance that combines housing mortgage and lifetime pension annuity insurance. The elderly who have full legal property rights in their houses mortgage their houses to the insurance company, continue to have the possession, use, income and disposal rights of the house with the consent of the mortgagee (insurance company), and receive pensions according to the agreed conditions until their death; After death, the insurance company obtains the right to dispose of the mortgaged property, and the proceeds from the disposal will be used first to repay pension insurance-related expenses. This kind of insurance is still in the pilot stage in my country and is relatively niche. It has high entry barriers, complex legal relationships, many risk factors, and is very strict on institutional business development and sales management.

The so-called "housing for retirement" proposed by criminals is extremely risky and contains hidden traps. Criminals cover up the nature of illegal fund-raising in the name of national policies, tricking the elderly into applying for real estate mortgages under the guise of "housing for retirement" and high-yield returns, and then use the borrowed money to buy financial products recommended by them. This "mortgage-borrowing-financial management" method has many operating procedures, chaotic participants, and high investment risks. It is not in line with the risk tolerance of the vast majority of elderly people. Moreover, the so-called "financial management products" are likely to be false, and the borrowed money will eventually end up in the pockets of illegal institutions.

Use the name of "housing for retirement" to trick the elderly into mortgage real estate and defraud funds. The "housing for retirement" claimed by criminals has nothing to do with the country's trial of housing reverse mortgage pension insurance. It is just a means of using national policies to build publicity for illegal fund-raising activities. In fact, they do not have the corresponding qualifications and capabilities at all, and are often A “new for old” Ponzi scheme. Some participants did not even know that their properties were mortgaged, and ended up losing their houses and being burdened with loans.

The above-mentioned behavior infringes on the legitimate rights and interests of consumers and has a bad impact. The Consumer Rights Protection Bureau of the China Banking and Insurance Regulatory Commission would like to remind consumers to do the following two things: remember and pay attention.

1. Remember that investment is risky. It is not advisable to have a gambling mentality and take risks. Consumers should establish a rational concept of investment and financial management, and should not easily believe in the so-called "guaranteed profit without losing money" or "risk-free, high-yield" propaganda, and should not invest in projects with unclear business and unclear risks. If a financial product promises a return rate of more than 6%, there will be a question mark. If it exceeds 8%, it will be very dangerous. If it exceeds 10%, you will be prepared to lose all your principal. "Guaranteed capital and high return" is a financial fraud. Remember that investing involves risks, and don’t be tempted by high returns to invest impulsively.

2. Remember to choose a formal institution. When purchasing financial investment products, you should choose formal institutions and formal channels based on your own risk tolerance. It is recommended that consumers, especially the elderly, consult professionals from formal financial institutions and discuss with their families before purchasing investment and financial products, and make necessary judgments and understandings about the authenticity and legality of investment activities to prevent fraud by criminals. , Be wary of the crazy marketing and customer soliciting behavior of informal institutions.

3. Beware of fund-raising fraud schemes. Fund-raising frauds often have the characteristics of "beating the drum and passing on the flowers" and "Ponzi schemes". They often repay the old with the new, lack actual business support and profit sources, and do not have projects that match the promised returns. It is easy for the money to escape and the capital chain to break. and other risks. Don’t be fooled by rhetoric such as “guaranteed capital and high interest rates” or “guaranteed returns”.

4. Pay attention to protecting personal information. Enhance personal information security awareness in daily life, treat the contract signing process with caution, and do not sign blank contracts.

Do not provide identity cards, bank card numbers, passwords, verification codes and other important information at will to prevent it from being used fraudulently, abused or illegally. If suspected illegal financial activities are discovered, you can promptly report the case to the public security organs or report the situation to the relevant financial regulatory authorities.