Method 2: Fraudulent elderly people's funds under the guise of housing for elderly care

The so-called "housing for elderly care" by criminals is false. Formal housing based elderly care refers to the innovative commercial pension insurance that combines housing mortgage with lifelong pension insurance for the elderly. Elderly people who have full legal property rights to their houses will mortgage their properties to an insurance company, continue to have the right to occupy, use, benefit from, and dispose of the property with the consent of the mortgagee (insurance company), and receive pension benefits according to the agreed conditions until their death; After the death of an elderly person, the insurance company obtains the right to dispose of the mortgaged property, and the proceeds from the disposal will be prioritized for paying the relevant expenses of pension insurance. This type of insurance is currently in the pilot stage and relatively niche in China. Its entry threshold is high, legal relationships are complex, and there are many risk factors. It is very strict for institutional business development and sales management.

The risk of illegal elements claiming to rely on housing for elderly care is extremely high, and there are hidden traps. Criminals cover up the essence of illegal fundraising under the guise of national policies, luring elderly people into applying for property mortgages under the guise of "housing for elderly care" and high returns, and then using the borrowed money to buy the recommended financial products. This "mortgage loan wealth management" method has multiple operational processes, chaotic participants, and high investment risks, which does not meet the risk tolerance of the vast majority of elderly people. Moreover, the so-called "financial products" are likely to be false, and the borrowed money ultimately goes into the pockets of illegal institutions.

Using the name of "housing for elderly care" to lure the elderly into pledging their property and defrauding funds. The illegal elements claim that "using houses for elderly care" is completely unrelated to the reverse mortgage pension insurance implemented by the state. It is just a means for them to fake national policies and promote illegal fundraising activities. In fact, they do not have the corresponding qualifications and abilities, and are often a Ponzi scheme of "using new for old". Some participants may not even know that their property has been mortgaged, ultimately losing the house and carrying the loan.

The above-mentioned actions infringe upon the legitimate rights and interests of consumers and have a negative impact. The Consumer Rights Protection Bureau of the China Banking and Insurance Regulatory Commission hereby reminds consumers to remember and pay attention to the following two things.

1、 Remember that investing comes with risks, and it is not advisable to take risks by having a gambling mentality.

Consumers should establish a rational investment and financial management concept, and not easily believe in the so-called "steady profit without loss" and "risk-free, high return" promotion. They should not invest in projects with unclear business and risks. If the promised yield of a wealth management product exceeds 6%, a question mark should be raised. If it exceeds 8%, it is very dangerous. If it exceeds 10%, it is necessary to prepare for the loss of all principal. "Guaranteed principal and high yield" is financial fraud. Remember that investing comes with risks, don't be tempted by high returns and invest impulsively.

2、 Remember to choose a reputable institution.

When purchasing financial investment products, one should consider their own risk tolerance and choose legitimate institutions and channels. It is recommended that consumers, especially the elderly, consult with professionals from formal financial institutions before purchasing investment and wealth management products, consult with family members, and make necessary judgments and understanding of the authenticity and legality of investment activities. This is to prevent illegal elements from committing fraud and infringement, and to be wary of the crazy marketing and customer acquisition behavior of informal institutions.

3、 Be cautious of fundraising scams.

Fundraising fraud often has the characteristics of "beating drums to spread flowers" and "Ponzi scheme", often returning old with new, lacking actual business support and profit sources, and there are no projects that match their promised returns, which can easily lead to risks such as running away with funds and breaking the capital chain. Don't be misled by phrases like "guaranteed principal and high interest rates" and "guaranteed returns".

4、 Pay attention to protecting personal information.

Enhance personal information security awareness in daily life, handle contract signing with caution, and avoid signing blank contracts. Do not provide important information such as ID card, bank card number, password, verification code, etc. at will to prevent unauthorized use, abuse, or illegal use. If suspected illegal financial activities are found, they can be promptly reported to the public security organs or reported to relevant financial regulatory departments.