Identification And Prevention Of Ponzi Scheme In Internet Finance Basing On The Case Of Ezubao

Internet finance is a new field which is different from traditional finance.It uses the new internet technology to integrate our traditional financial business efficiently and conveniently,and the transaction reduces the cost of the traditional financial industry greatly with the internet virtual platform.As an integral part of China’s financial system,the rapid development of internet finance has aroused widespread concern in the community in recent years.Although the vigorous development of internet finance in China has promoted the reform of the traditional financial industry and promoted mass entrepreneurship and innovation,but there are some internet financial enterprises using Ponzi scheme under the banner of financial innovation,and the trend is more intense especially in recent years,which not only harm the interests of the people,but also endanger social stability.Ezubao illegal financing case is much representative.Because the case of ezubao has the largest money and the largest number of investors,it is also a typical case of Ponzi scheme in the internet financial industry.The first part is the introduction,from which we can see background,significance and the study of internet finance from the domestic and foreign experts and scholars.Then,we seek a new perspective for this paper through the study of status and shortcomings about internet finance.The second part is the overview of internet finance and Ponzi scheme,we define the meaning of internet finance,comb the development status at home and abroad,summarize the performance of Ponzi scheme in internet finance,and introduce the economic basis of financial regulation.The third part is the introduction of the case of ezubao,including the situation of ezubao platform and ezubao case.The fourth part starts from the specific performance of the Ponzi scheme in the ezubao,and then analyzes the behavior of the ezubao platform.Finally we summarize the reason of ezubao’s Ponzi scheme by analyzing the lack of external supervision in internet finance.On the basis of the previous study,the fifth part of the article presents the proposal about preventing the Ponzi scheme in internet finance.In the experience of foreign internet financial supervision,this paper argues that it should be from three aspects to put forward the prevention of Ponzi scheme.For the internet financial industry,it is necessary to strengthen internal risk control for the prevention of Ponzi scheme.Investors need to improve the ability to identify risk,and should be familiar with the characteristics of Ponzi scheme,so they can identify andprevent the fraud better.In the aspect of external supervision,the most important measure is to establish the credit system on internet finance,in addition to strengthening constructions about the admission to market,information disclosure,and the exit of the market.They also need to improve the criminal legislation,increase the punishment of illegal fund raising activities,such as the Ponzi scheme.