Beware of New Types of Illegal Financial Activities: Financial Traps Hidden Behind Metaverse, Blockchain, and Cloud Farming

Beware of New Types of Illegal Financial Activities: Financial Traps Hidden Behind Metaverse, Blockchain, and Cloud FarmingIn recent years, illegal financial activities have become increasingly diverse and covert. Criminal elements leverage emerging technologies and popular concepts to constantly update their fraudulent methods, enticing the public to participate in illegal fund-raising, online scams, and financial pyramid schemes

Beware of New Types of Illegal Financial Activities: Financial Traps Hidden Behind Metaverse, Blockchain, and Cloud Farming

In recent years, illegal financial activities have become increasingly diverse and covert. Criminal elements leverage emerging technologies and popular concepts to constantly update their fraudulent methods, enticing the public to participate in illegal fund-raising, online scams, and financial pyramid schemes. The Beijing Regulatory Bureau of the National Financial Regulatory Administration recently issued a risk alert, warning the public about new types of illegal financial activities and outlining a three-step strategy for prevention.

With the rise of emerging technologies such as the metaverse, blockchain, and artificial intelligence, criminals have quickly seized the opportunity, packaging these concepts as high-tech, high-return investment projects to attract more victims. For example, some criminals use the guise of the "metaverse" or "blockchain" to launch so-called "play-to-earn" projects, inducing the public to purchase virtual currency and game equipmenta trap for illegally absorbing public funds. These projects typically promise high returns but their operational models are unsustainable, leaving investors facing significant risks.

Besides the metaverse and blockchain, some criminals also utilize concepts like "cloud farming" and "cloud planting," packaging ordinary agricultural production activities as high-tech investment projects and promoting them through internet platforms to attract investors. They often fabricate videos and images of farming and planting, exaggerating or falsifying actual production scenarios, and promising low risk and high returns to deceive the public into investing. However, these projects often lack actual production capacity and profit models, ultimately leading to investors losing all their money.

In January this year, the Ministry of Agriculture and Rural Affairs, the Financial Regulatory Authority, the Ministry of Public Security, and the State Administration for Market Regulation jointly issued a notice on further preventing fraudulent risks in the "cloud farming economy," pointing out three characteristics of fraudulent activities in this area: first, the use of the "agriculture + technology" gimmick to fabricate or exaggerate actual production scenarios, promising low risk and high returns; second, a strong online presence, with criminals using online payment tools to receive and pay funds, resulting in rapid risk spread and difficulties in fund supervision and tracking; and third, the existence of multiple risks of illegal and criminal activities, where criminals lure the public into investing with promises of dividends from planting and raising livestock, returns of agricultural products, etc., engaging in illegal fund-raising, pyramid schemes, and other illegal and criminal activities.

These new types of illegal financial activities are not only covert but also spread quickly and widely. Criminals use online platforms and social media for promotion, making it difficult for investors to discern truth from falsehood. Simultaneously, the complexity of capital flows poses a significant challenge to regulatory authorities.

To effectively prevent new types of illegal financial activities, relevant officials from the Beijing Financial Regulatory Bureau proposed a three-step strategy: strengthening rational investment awareness, understanding the nature of illegal fund-raising, and choosing legitimate investment channels.

Step 1: Enhance Rational Investment Awareness. Investors need to remember that "there's no such thing as a free lunch, and high returns with guaranteed principal are traps." When faced with so-called "high returns" and "get-rich-quick" investment projects, stay calm, rationally analyze the project's authenticity, legality, and potential risks. Avoid blindly following trends and hot topics; be wary of high rebates, skeptical of exaggerated advertising, and cautious of investment projects introduced by acquaintances, preventing impulsive decisions that lead to traps. Carefully examine the investment project's profit model, capital flow, and risk control, and do not easily believe the sweet talk of criminals.

Step 2: Recognize the Nature of Illegal Fund-Raising. Investors need to fully understand the authenticity, legality, and potential risks of investment projects. Rationalize the emerging concepts of blockchain, the metaverse, and cloud farming; don't be misled by these concepts, and don't blindly trust the recommendations of so-called "experts" or "mentors." Carefully read relevant legal documents and contract clauses, understanding the project's risk-bearing mechanism to avoid losses due to information asymmetry. Be wary of projects promising high returns, low risks, and quick riches, as these are often illegal fund-raising scams in fancy dress.

Step 3: Choose Legitimate Investment Channels. Investors should purchase legitimate financial products through legitimate financial institutions. When choosing investment products, carefully verify the institution's and product's qualifications; do not easily believe the publicity of illegitimate channels. You can verify institution and product qualification information through official channels, such as searching for the "Financial Product Inquiry Platform" via WeChat mini-programs and mobile apps to effectively identify illegal financial activities. Do not randomly click on unknown links or transfer funds to unfamiliar accounts; protect your personal information and financial security.

Furthermore, if you discover any clues of illegal financial activities, promptly preserve evidence and actively report them to the relevant authorities, assisting regulatory departments in cracking down on illegal financial activities and protecting your legitimate rights and interests. Actively participate in financial literacy learning to enhance your financial risk prevention awarenessthis is key to avoiding being cheated.

In conclusion, faced with the ever-evolving landscape of illegal financial activities, the public must remain vigilant, strengthen risk prevention awareness, invest rationally, and choose legitimate channels to effectively protect their financial security and avoid economic losses. The methods of criminals may constantly change, but their essence remains the same: illegal profit-seeking. Only by increasing vigilance can the public see through their scams. Remember, high returns often come with high risks. There's no such thing as a free lunch; always stay alert and protect your wallet.