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.
According to FINRA's National Cause and Financial Crimes program, boiler room operations are still used to pitch dubious investment schemes. Typically run as outbound call centers, boiler rooms are characterized by high pressure sales pitches from promoters targeting retail investors with highly speculative--oftentimes fraudulent--investments. And this goes beyond phone calls; today's boiler rooms also rely on more modern means to contact potential investors, such as messaging apps and social media.
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.
Source Fool.com
