One of the reasons that so many people fall for boiler room fraud or investment fraud is down to the fact that a high return is promised. This is exactly the sort of comment that grabs attention and you can see why many people feel that investing money in this sort of scheme is worth doing so. However, there is a very good chance that the investor will receive nothing in return, which means that they will lose out on money and suffer a lot of stress and heartache.
One of the interesting things about boiler room fraud is that can cover a broad range of topics. The most common type of boiler room fraud revolves around fraud but this is far from being the only commodity on offer with this style of fraud. Some of the aspects that are listed in boiler room fraud include:
- Land
- Wine
- Gold
- Jewels
- Carbon credits
However, no matter what is on offer, the investment is a pointless and worthless one. It will either refer to something that is non-existent or it will be worthless or something that you cannot sell. The promises made by the fraudster are definitely enticing but in reality, there is nothing of substance being offered to the investor for their money.
There are some warning signs about this style of fraud and if one of these two things occur, you should be concerned and if you recognise both of these aspects, you should be extremely concerned and be looking to get out of the conversation as quickly as you can.
Cold Calls
If you receive a phone call or some form of conversation out of the blue, it makes sense to be cautious about it. Why would someone or some firm you have never dealt with in the past suddenly be looking to communicate with you? This should be enough to leave you suspicious about what is actually on offer.
An Offer that is Too Good to be True
The other significant warning sign for boiler room fraud comes in the form of an offer that seems too good to be true. The fraudster wants to entice you with a tremendous offer, an offer that you cannot seriously turn down. The problem is, you have to ask yourself why you are receiving this offer. If more people thought seriously about offers that were too good to be true, they would realise that they weren’t worth considering.
Sadly, human nature drives us to taking these offers in the hope that they are true. We are all looking for more money and for ways that we can improve our lives but it is very rare for an offer to come out of the blue and yet still be so enticing.
Don’t Feel Pressured into Action
Another trait that you commonly find is that the fraudster is very insistent with respect to you taking up the deal. Even if you say no and tell them that you aren’t interested, you’ll find that they will look to push you and push you until you eventually say yes. Many legitimate companies undertake strong selling tactics, so it can be difficult to tell the difference between a pushy firm and a fraudster, but you should never feel pressured into buying something. If you don’t feel comfortable about what is on offer, end the conversation.
You may feel some regret at potentially missing out on something very important but it is far more likely that hanging up or ending the conversation will save you money and a lot of stress in the long run.
One of the reasons that fraudsters don’t want you to break conversation is because this will give you time to think about your options and to carry out some research. If you are looking to invest, you should be looking to carry out research. If your investment opportunity is only available to you with having the chance to carry out some research, you have to say that this is not an option you should be happy or comfortable with.
Boiler room can ruin people’s lives and there is no denying that this is a style of fraud that can be very lucrative for many fraudsters. If you want to safeguard yourself and your money, be safe and don’t fall for the common traits found in fraudsters.
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.