How to prevent and avoid investment traps

Issuing time:2018-04-04 17:48

At present, the domestic investment market presents a thriving scene, but at the same time, relevant laws and regulations are still lagging behind. Therefore, many kinds of mischief-stricken fraudsters are also found in this industry. No matter if it is an investor or an entrepreneur, if they choose to be careless, they will fall into the trap of fraudsters.

  Here, the China Venture Capital Network reminds investors and entrepreneurs that they must keep their eyes open. Do not trust the suspicious enterprises and individuals. It is imperative for investors to make detailed market research and market analysis before investing. Believe that the other party promises high returns, and should consult industry experts and legal persons in advance for unfamiliar investment areas. For entrepreneurs, we must not believe in the investment commitments made by so-called investment companies, and rashly pay so-called assessment reports, feasibility plans, and attorney fees to unscrupulous companies.

 Here are some common deceptions in the investment project market to be disclosed. Investors and entrepreneurs are advised to take warnings and not to repeat the mistakes.

  1. Cross-border investment group fraud:

   At present, Chinese laws do not impose very good sanctions on similar commercial frauds, causing such crimes to be rampant in both investment and trade. They are often referred to as XX International Group, and some are venture capital companies and funds. Faced with the appearance, first of all, they will look for project holders and patent holders who are eager to obtain investment, and then give a high evaluation of the project and make a high investment commitment. When the project party thinks that the dream has come true, They will immediately ask the project party for the cost of project evaluation, feasibility analysis, financial advisor, lawyer fairness and many other pretexts. Once the project party pays the above fees, they often use a few completely worthless documents to smuggle the project side and invest at the same time. The matter will be pushed again and again without the following.

  Often, each project party will encounter a lot of harassment from similar investment companies after the project is announced. Of course, there will be investors who are really interested in the project. This is very important. In fact, as long as the project party is correct and carefully observes, it is easy to find flaws in the so-called "investment company."

If you look at a website, whether it is a regular or fraudulent company, it will have its own website. Liar companies are often called in the name of an international group. Therefore, as long as they observe their English version of the website, if the English website is less or more rough than the Chinese, the company is a fraud. The company is undoubtedly because if the website is produced abroad, the style is quite different from the domestic website and it is well-designed. Looking at passionate real investors will not be very enthusiastic about you at the beginning. Even if he is really interested in your project, he will not give a high rating on your project in the beginning, but try to Picking your faults, and fraud companies are very different, they are often very active and often take the initiative to contact you, and at the same time turn a blind eye to the obvious shortcomings in the project. Whether fees are charged It is normal for investment intermediary companies to collect intermediary fees. At the same time, most of them are also charged after successful project financing. However, it is impossible for investors who are investors to collect any fees from project participants. There are no success stories Large investment groups often invest in many companies and projects. These are well documented and can be verified on their own websites and news reports. If there is no such record, the investment company is basically sure that it is fraud company. 2, 1 million yuan to join, the annual profit of 1 million

    Many investment websites now publish a large number of information on investment projects without any exception. All these information claims that they have very generous returns. They do not rule out some of these projects that can make money, but the vast majority of them actually use domestic employment difficulties. Many people are eager to Entrepreneurial mentality is a trap for fraud, because they all have legal procedures, all kinds of documents are complete, and they also sign contracts, causing losses to investors. They can shirk their responsibilities on the pretext of mismanagement. The law basically has no way to sanction them. The same group of fraudsters continue to create wealthy myths in different industries. A project is deceived almost immediately for another new project. In short, it is increasingly attractive and professional.

    It is relatively difficult for these kinds of frauds to be distinguished because they are often targeted at small investors based on entrepreneurship and wealth. They often do not have deep industry experience and investment experience and are therefore easily deceived by smartly packaged investment projects. Remind entrepreneurs, if you join, be sure to choose a brand reputable companies to join, do not believe that the myth of overnight riches, do small business, all wealth is exchanged for hard work.


Do not believe that the so-called materials, products 100% recycled processing projects. Because the cost of sending the materials to franchisees and recycling finished products is far higher than the cost of setting up factories themselves, and there is no guarantee of quality. How can real managers do such stupid things? Projects with a significantly higher return on investment than the industry average must be fraudulent. For projects where the franchisee’s input and income are inaccurately estimated, such as a catering project, the calculation of rent and storefront costs is based on the cost of remote locations, and the income is calculated based on the flow of people in the bustling area. ? High-tech products made by people, simple equipment and earth methods can produce high-tech products with better performance and lower prices. There are not many good things like this. If anyone has this ability, he will have already won the Nobel Prize. Will not be taught to you here. Liar tricks are endless. It may be that the law does nothing for them. Everyone needs to keep an eye on their own. If they find fraudsters or have been fooled, everyone is welcome to leave a message here to exchange experiences. Warning posterity is also a benefit to the community.

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