FINRA Warns of Increase in “Boiler-Room” Investment Fraud Scams
The Financial Industry Regulatory Authority (“FINRA”) has received a number of complaints from individuals – particularly seniors – defrauded through “boiler room” style cold calls.
According to FINRA, consumers receive unsolicited cold calls from individuals who claim to work for legitimate organizations that offer stock recommendations. The callers use high-pressure tactics to urge consumers to buy penny stocks or other speculative investments.
But the calls are scams. The purported organizations often are not registered with FINRA and may not even be valid business entities. Sometimes the callers use fake names or disguise their telephone numbers to make it appear they are calling from a reputable brokerage firm or organization.
You may view FINRA’s Press Release here.
How to Protect Yourself from Becoming a Victim of Investment Fraud
Consumers should simply hang up if they receive an unsolicited call from someone purporting to offer an investment opportunity. FINRA maintains an online database — the FINRA BrokerCheck system — where consumers can verify the identity and background of the caller. Consumers should not make any wire transfers and should never provide the caller with a credit card number. Any investment opportunity should be discussed with a trusted financial professional and/or attorney before proceeding.
If you believe you may have been a victim of a cold-call scam, you should report the matter to FINRA immediately and consult with experienced counsel about your rights and remedies.
Law Offices of Robert L. Hill, APC
The Law Offices of Robert L. Hill, APC, represents victims of investment fraud in pursuing claims for fraud, negligence, breach of fiduciary duty, and (if the victim is over the age of 65) financial elder abuse. The firm handles cases through the FINRA arbitration process, as well as California state and federal court. The firm is located in Carlsbad, California, serving clients throughout the state.