While there are many common scams to be aware of, it may be that a boiler room scam is a term that you aren’t too familiar with. This isn’t a scam that everyone will have experience of or have to worry about but this is a scam that can have a huge impact on people’s lives. With this style of scam, you’ll find that the fraudster plays the role of a stockbroker and they will try and sell you shares. These shares will either not exist or they will be worthless.
A very common feature of boiler room frauds and scams come with the caller being very persistent about making the sale. You may find that many legitimate businesses and sellers are very persuasive and try their hardest to make a sale but you should always feel that you have the right to say no.
If you don’t feel that you are in control of the situation, tell the caller so and if you have to hang up the call, you should hang up the call. If the caller continues to call, you should continue to hang up and you should also report the caller to the relevant authorities, while informing the caller that you intend to take this course of action.
You usually find that a caller will do anything to prevent you from hanging up, and you have to think why this is the case. It is because they know that if a person hangs up, they will think over the offer, they will talk to other people and they will likely carry out research of their own. These are all ways in which the person will find out that the caller is a fraud, so they don’t want people to carry out these actions.
A legitimate business will be more than happy to allow you to weigh up an option because they know that their background and standing will place them in good stead with respect to making sales. They may be keen to make the sale as quickly as possible but they know that allowing some customers to review and research their options will be of benefit. This is not the case for fraudsters.
Fraudsters put a lot of time and effort into their actions
Of course, you have to be aware that fraudsters carrying out boiler room scams will put a lot of time and effort into their crime. It is not just a case of carrying out the phone call; there is a great deal of work and effort put into this style of crime. This means that the fraudster will research shares and the terminology used by professionals.
It is also likely that the fraudster will set up a website for their company. This means that anyone looking to review the site will find an online presence. This can make you think that the company is real, but if you do carry out further research, you’ll need to look beyond the company website.
One of the strongest reasons to use the internet these days is that everyone can voice an opinion and provide some insight into their dealings with firms. If a firm is operating fraudulently, it is unlikely that you will be their first victim, unless you are really unlucky.
This means that other people may have experiences with them and if they have shared these experiences, you will be able to read about them online. You will probably find that a very quick search when it comes to company names will provide you with everything you need to know about a company.
Do your research
The fact that this information is likely to be available online means that fraudsters don’t want you to research them, and they won’t let you off the phone. Of course, if you can stay on the phone while carrying out research on a mobile device or tablet, you could find relevant information while still talking to the fraudster.
This is another very strong benefit of the wide availability of the internet, so if you have any doubts, make sure you take the time and effort to check out a company or what they have to offer.
Boiler room fraud can have a huge impact on your life, so give yourself the best chances of avoiding this style of crime. Being alert to boiler room fraud could have a big impact on your life.
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.