Core Viewpoint - The article highlights the prevalence of illegal financial activities, particularly in the form of "proxy insurance cancellation" and "fake loan applications," which exploit vulnerable individuals seeking financial relief [1][2][3]. Group 1: Illegal Financial Activities - Social media platforms are being used to promote illegal services such as "proxy insurance cancellation" and "credit repair," which are often fronts for financial crime [1]. - Individuals like Lin and Ma have been identified as orchestrators of illegal schemes, encouraging clients to pursue unwarranted insurance refunds and charging high commissions of 20%-30% on the total premiums [2]. - A case involving Ning and others illustrates the fraudulent practice of creating fake down payment certificates to secure loans for individuals lacking repayment capability, resulting in a total fraud of over 7.38 million yuan [3]. Group 2: Regulatory Response - The Financial Regulatory Bureau and the Ministry of Public Security are intensifying efforts to combat illegal financial activities, emphasizing the need for strict penalties against those disguising illegal profits as "proxy rights protection" [3]. - The article notes that these illegal activities disrupt normal complaint channels and mislead policyholders, necessitating a robust regulatory response [3]. Group 3: Recommendations for Financial Institutions - Legal experts suggest that financial institutions should enhance their processes and risk warning systems to prevent exploitation by illegal financial entities [4][5]. - Institutions are advised to improve due diligence on intermediaries and develop risk models that include scenarios like "professional debtors" and "fake insurance cancellations" [5]. - Consumer education is crucial, as scammers increasingly use relatable and social media-driven tactics to lure victims into fraudulent schemes [5][6].