What is illegal fund raising? Which areas are the high incidence areas of illegal fund-raising?

What is illegal fund raising? Which areas are the high incidence areas of illegal fund-raising? According to the Notice on Banning Illegal Financial Institutions and Illegal Financial Business Activities, illegal fund-raising refers to the behavior that companies or individuals raise funds from the public by issuing stocks, bonds, lottery tickets, investment fund securities or other creditor's rights certificates without the approval of relevant departments, and agree to repay the principal and interest to investors in cash, in kind or in other ways within a certain period of time. There are frequent cases of illegal fund-raising in society. How should investors avoid being cheated? Which areas are the high incidence areas of illegal fund-raising?

The Supreme People's Court, the Supreme People's Procuratorate, the Ministry of Public Security, the Party, the National People's Congress and other 14 state organs held an inter-ministerial joint meeting to deal with illegal fund-raising. The meeting pointed out the characteristics of the top ten areas with high incidence of illegal fund-raising and listed three characteristics of illegal fund-raising by online lending institutions. The following are the characteristics of the top ten areas with high incidence of illegal fund-raising listed by the meeting.

(1) Characteristics of illegal financing by private investment financing intermediaries

First, in the name of investment asset management, it promised to sell asset management products to the public to absorb public funds, fictitious investment projects and borrowers, and directly implemented fund-raising fraud. The second is to provide intermediary introduction and guarantee services for both the supply and demand sides of funds, and use the many-to-one and fund pool model to raise funds for third parties suspected of illegal fund-raising. Third, entity enterprises set up financing institutions to finance themselves, and some enterprises set up guarantee companies themselves or provide guarantees for themselves through affiliated companies.

(B) characteristics of illegal fund-raising by online lending institutions