Recently, the Shenzhen Local Financial Regulatory Bureau issued a warning stating that with the rapid development of mobile internet technology, various mobile apps have become widely popular in daily life. However, some criminals exploit the concealment and broad reach of apps to conduct illegal financial activities such as fundraising and fraud under the guise of "high returns" and "quick wealth," severely endangering public financial security and disrupting normal market order. The bureau has issued a risk alert exposing five typical fraudulent schemes used by illegal financial apps.
First, exploiting trending concepts. Criminals target emerging sectors like "blockchain," "virtual currencies," "cloud farming economy," "low-altitude economy," and "gold investments," capitalizing on public curiosity and investment enthusiasm. They create fake trading platforms, falsely advertising "high-yield financial products." In reality, these platforms lack genuine business operations or tangible transactions, and all promised "investment returns" are deceptive.
Second, impersonating legitimate entities. Some illegal apps mimic state-owned enterprises, government-backed projects, or licensed financial institutions, using logos, interfaces, and names resembling official ones to mislead users into believing they are compliant. Initially, scammers may offer small returns or short-term "dividends" to gain trust. Once users invest more, they impose withdrawal barriers under pretexts like "system maintenance," "account freezing fees," or "failed identity verification," ultimately absconding with the funds.
Third, luring users with incentives. Illegal apps often employ "invitation code registration" models, offering rewards like "referral cashbacks," "multi-level commissions," or "team performance bonuses," coupled with time-limited promotions such as "extra yields for deposits" or "membership upgrades for higher returns." These platforms have no real business operations—their so-called "profits" rely solely on new user deposits, essentially functioning as pyramid schemes.
Fourth, disguising scams as e-commerce. Some criminals promote "shopping rebates" or "earn while you spend," requiring users to deposit funds to become "members" at varying tiers (e.g., "basic," "premium," or "diamond"), claiming higher rebates for higher tiers. However, goods on these platforms are priced far above market rates, leaving users with negligible rebates and trapped in a "high-spend, low-return" cycle.
Fifth, cross-border operations. Illegal apps spread via SMS links, social media (WeChat, QQ), pop-up ads, and even offline "investment seminars" or word-of-mouth referrals, targeting users across regions or countries. Some demand fund transfers to overseas private accounts or unregulated entities. When platforms vanish, victims face unrecoverable losses due to complex fund trails and hidden operators.
The Shenzhen bureau also reminded the public that under China’s regulations on preventing illegal fundraising, no one may profit from such activities, and participants bear their own losses. Citizens are urged to enhance risk awareness and steer clear of illegal financial schemes.
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