Setting up fake projects on crowdfunding platforms to defraud investors of their funds is against the law and platform regulations. However, some people may try to use dishonest methods to execute such fraud. Here are some common fraud methods, but it should be clear that these are illegal and may lead to serious legal consequences: 1. **False information and promises**: Fraudsters may create false project descriptions, exaggerate or fabricate the product's features, potential, and market demand to attract investors. 2. **False identities**: Projects are created using fake company or personal information, with no real person or entity behind them. 3. **Fake support**: Create false initial support and positive reviews to increase the credibility of the project and attract more people to participate. 4. **Fake progress**: Regularly release false project progress updates, falsify the development and production stages of the project to maintain investor confidence. Ways to prevent this include: - **Due diligence**: Investors should try to conduct a detailed background check before investing, verify the identity and past project experience of the project sponsor. - **Check social media and news reports**: Verify whether there are other credible external reports or social media discussions about the project. - **Beware of high return promises**: Projects that usually promise extremely high returns require extra caution. Investors are advised to exercise strict caution when investing on crowdfunding platforms and choose reputable and transparent platforms and projects.