As digital finance and social media continue to evolve, so do the tactics of online scammers. One particularly deceptive type of scam—the so-called “poverty alleviation investment project”—is making a comeback, dressed in a more sophisticated and convincing disguise. DJK LAW GROUP issues this risk alert to warn the public of the new variations of this scam and to help individuals protect themselves from falling victim.
1. The Illusion of Public Good: A Charitable Cover for a Financial Trap
These scams are often framed as supporting national poverty alleviation efforts or rural revitalization, claiming to be “government-backed initiatives.” Victims are told that by investing small sums through an app or mini-program, they can earn high returns along with “subsidies.”
Common slogans include:
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“Invest just $15 and help poor farmers while earning $500/month!”
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“Do good and earn money—join the national poverty project!”
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“Daily payouts from poverty funds—zero risk, guaranteed income!”
These promotions appear caring, profitable, and even government-endorsed—making them extremely deceptive.
2. The New Scam Tactics: Smarter, Slicker, Harder to Detect
Unlike older, obvious scams, the latest variants of these “poverty investment” traps are more refined and professional. Key features include:
• Fake Government Endorsement
Fraudsters fabricate documents with official seals, news screenshots, and even fake media coverage to give the illusion of government backing.
• High-Fidelity Apps and Mini-Programs
Scammers create well-designed platforms that mimic legitimate financial apps, with sleek dashboards, transaction histories, and detailed earnings graphs—making them appear authentic.
• Referral Commissions and Pyramid Schemes
Victims are encouraged to invite others in exchange for bonuses. This “multi-level” structure often qualifies as illegal pyramid selling.
• Early Returns, Then Sudden Disappearance
Initial small investments may yield quick payouts, creating trust. Victims then invest larger amounts—only to see the platform vanish overnight.
3. Legal Perspective: What Laws Are Broken?
These scams typically violate multiple laws under Chinese criminal code:
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Illegal Public Fundraising (Article 176)
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Organizing/Leading Pyramid Schemes (Article 224-1)
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Fraud (Article 266)
Organizers face serious criminal charges, and even participants in referral activities may be held legally accountable, knowingly or not.
4. DJK LAW GROUP’s Advice: Stay Away from “Charity Investments” and Protect Your Finances
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Be skeptical of any investment using terms like “national project” or “poverty relief.” Legitimate programs do not recruit via WeChat or unknown platforms.
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Never download unofficial apps or mini-programs. Avoid linking bank accounts or personal info.
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Avoid referral-based earning schemes. If it depends on recruiting others, it’s likely a scam.
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Don’t trust early returns. Initial profits are a lure, not proof of legitimacy.
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If you suspect a scam, take screenshots, save all records, and report to the police or consult a lawyer immediately.
Conclusion
As AI, social media, and fintech continue to evolve, so do fraud schemes. DJK LAW GROUP （https://www.djkllp.com/）reminds you: awareness is your first line of defense. Be cautious of any “guaranteed profit” or “government-supported” investment offer. If you or someone you know may have been affected by a similar scam, contact us for legal advice and professional support.
