Low investment returns fuel boom in 'boiler room' scams

Badtato

According to a BBC article, City of London police say the low returns available via banks has helped boiler room share scams make a comeback. I can't say I know anyone who would invest with someone who cold-calls them ... but I guess there's still plenty of naive people out there (although there is a funny link in the article where some bloke gives a boiler room broker what for on the phone :T)

But as I'm new here, I can't post the link It's on the BBC website, anyway.

dealer_wins

Heres the link.

http://www.bbc.co.uk/news/business-11318590

Its scares me how so many people get ripped off for thousands.

CLAPTON

I had a call from one of these scams
very professional

first an attractive female voice just calling as 'I'ld shown interest in.... something or other'; but absolutely no attempt to sell anything... just offering info about a future listing (and by the way how is the wife/kids etc etc) plus a general chat about the stock market especially in the US .. (had I even been there?)

a couple of weeks later the same female voice giving a few details.. american company just on the point of a great deal and wanting to raise more capital but no attempt to sell anything; again lots of chat about the market / usa etc

next was a bloke, very chatty just discussing the situation; he's been allocated a few blocks of 40k for his clients.... would 40k be ok
oh no, well as a special favour he could divide this into maybe 2 or 4 lots... anyway no attempt to close the deal just yet; would keep me informed but trying to establish how much I would be 'comfortable' with

next call was a lot more pushy... deal going down in a few days, only limited time to buy in, absolutely guarenteed; get out in a month or so with 50% maybe more profit, could I pay now?..no well he'ld phone back tomorrow so I could raise the money.

couple of days later.. no chat .. just..give me the money
when I said I didn't think it was quite me, we left it on a pleasant note sometihing like.... 'you time wasting w....r'

I just can't understand how people fall for this but all the evidence is that they do.