Boiler Rooms—An Old Stock Scam  Gets A Technology Makeover

The ways in which people communicate have changed with advancements in technology, and so have the tactics of “cold calling” boiler rooms.

(NAPSI)—While tactics may have changed, “boiler room” operations are still used to pitch dubious investment schemes, according to the experts at the Financial Industry Regulatory Authority (FINRA). Typically run as outbound call centers, boiler rooms target retail investors with highly speculative—often fraudulent—investments. In addition to phone calls, today’s boiler rooms also rely on messaging apps and social media to contact potential investors.

Regardless of the method of contact, the scammer’s goal is the same: Use high-pressure tactics and persuasive language to convince investors to purchase specific investments that will ultimately enrich the scammer. 

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