Boiler Room Scams - Reviewing Their Nature, Impact, And Consequences

Boiler Room Scams Reviewing Their Nature, Impact, And Consequences

What are boiler room scams?

These scams and fake schemes involve fraudsters attempting to trick people into investing money into investment schemes recommended by them. Such malicious individuals usually operate out of call centers and have a sizable workforce to scam multiple people at the same time.

Mostly, they contact individuals via spam emails and cold calls.

Where did the name come from?

The term is believed to have come up from the hurriedly put together office spaces in basements of office buildings for the purpose of scamming people through cold calls. When such scams were fairly new, the working spaces of fraudsters were mostly next to boiler rooms, which is how it got the name of “boiler room scams.” In addition to this, the fact that the salespersons use high pressure sales tactics to sell fraudulent and penny stocks is also one of the reasons why it is named so.

Signs you are being lured into fake investment schemes

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Promises of high returns Claims that are not verifiable Demands of quick payment Recurrent spam calls The caller claims to have a fancy sounding job Caller claims they are based overseas Sends you spammy links that lead you to unsecure payment gateways.

Sources ● Such fraudulent, fake firms usually have a list of potential victims who have been lured by similar such fake schemes in the past. ● Individuals accused of boiler room scams and frauds could be looking at prison time of five years. This number may go up depending on the magnitude of the crime.

Keeping Yourself Safe Add your phone number to the DND Registry Hang up as soon as you realize that you are being lured into a scam Read reviews of the companies they claim to be representing.

Don’t click on spammy links sent by strangers associated with little known companies Don’t make on-the-spot decisions, especially when you get a sales call Talk to a financial advisor if you have trouble understanding few investment opportunities Keep your risk tolerance in mind Refrain from revealing your personal details and credit card information through spammy links.

THANK YOU! Presented & Reviewed By: Aarti Shah,

Manager, Money 2.0 Conference https://www.money2conf.com/