Recognizing And Avoiding Boiler Room Fraud

boiler room scammer on the phoneOne of the most common forms of fraud in the modern era is enticing people with the chance to make a lot of money. If you are looking to commit fraud, it makes sense to focus on someone who has a bit of money to spare and one thing that really motivates people to take action or spend money is the thought of making more money.

There is no getting away from the fact that the chance to invest in something that will provide a good return for your cash is going to be of interest and excitement to most people, and this is why there is such scope for investment fraud.

While there are many different types of investment, a common name, and a very common occurrence is boiler fraud. This is a style of fraud when the fraudster contacts the victim and makes them an offer that is seemingly too good to be true. It is worth bearing in mind that what is on offer can vary between a number of things. Shares are the most common thing that are associated with boiler room fraud but you may also be offered the chance to buy:

  • Plots of land
  • Carbon credits
  • Gold
  • Wine
  • Diamonds
  • Jewels

It is easy to see how investing in any of these aspects could provide you with a good return for your money, and this is why this style of fraud exists. However, knowing that these frauds exist is one thing, you need to know what they usually entail of and how best to avoid them. First of all, having a good level of willpower will be important because many people will find that the temptation associated with this style of fraud is too much to overlook or ignore.

In the end though, the elements that someone invests in will turn out to be worthless, which means the victim will lose a great deal of money while also suffering a lot of stress and pressure.

Boiler room frauds will often involve a call out of the blue

You will find that this style of fraud begins with a cold call, which means that the fraudster will get in touch with you out of the blue. This should set alarm bells ringing in your mind but the seller will always come up with a detailed story which justifies their communication with you and which explains why they are calling you without any prior contact or warning. If you receive a phone call from anyone you have had no contact w8ith before, you should be wary. When it comes to obtaining your details, it may be that they have found your details on a list of shareholders or they have managed to obtain your details and some information that would lead them to think that you are a viable person to provide this style of offer to.

Does the deal sound too good to be true?

You should always bear in mind the old adage that “if something seems too good to be true, it usually is”. No one is looking to give away things for nothing these days and if there was such a great opportunity from the aspects involved with the deal, surely the seller would be using them themselves? Again, they will always manage to provide you with a reason or some form of justification that helps to explain why they are offering the deal to you as opposed to taking it themselves but you shouldn’t be fooled or swayed by what they have to offer.

One thing to be very aware of when it comes to boiler room fraud is that this is a style of fraud where high-pressured selling will often come into play. You will often find that fraudsters achieve success with this style of crime due to their persistence and consistency. This means that you may be aware that something untoward is happening but in the end you are just desperate to get away from the call.

You should look to hang up as soon as possible and contact the relevant authorities. Boiler room fraud is a major fraud that can be very rewarding for criminals, even if they have to contact a lot of people in order to gain success. As this is a crime that is on the rise, there is a growing awareness of this style of crime so if you need assistance or guidance on this type of crime and how to best avoid it, help is available.

Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 9 years but has been writing for as long as he can care to remember. When Andrew isn’t sat behind a laptop or researching a story, he will be found watching a gig or a game of football.

Advertisement