ASC Feature:
Don’t let cold calls put your money on ice
(albertasecurities.com)
Cold calling is defined as an unsolicited phone call or visit to an individual trying to sell goods or services. One of the many ways Albertans are approached with potentially fraudulent investment opportunities is via cold call.
Boiler room scams are a common type of fraud. Fraudsters set up makeshift offices, known as “boiler rooms” where they cold call potential investors. If the person sounds interested, the scam artist will send them an information package about the investment opportunity. Often, the packages look professional but are filled with false information.
Like a true salesperson, the fraudster will call you back and continue to try to sell you on this “too-good-to-be-true” opportunity. The opportunity will often be related to a sector of the economy that is currently getting attention in the news. This is designed to make it sound like a good investment, but in reality, the sales pitch is mostly based on false information or the investments may not even exist.
Pressure from a smooth-talking scam artist does compel some to invest on the spot. Once an investment is made, the investor will likely never see their money again. Boiler rooms disappear as quickly as they are set up.
Knowing how to recognize a cold call before you pick up the phone is a good first step to protecting yourself. Red flags indicating that a cold call may be a scam include:
- Caller is presenting you with an international investment opportunity.
- Caller tells you that this investment opportunity is exclusive and is time-sensitive.
- Caller is an aggressive smooth-talker.
- Caller tries to pressure you into immediate action.
- Caller is asking you to send them money through a wire service.
Protect yourself:
- Do not take immediate action, Check First. Do your own research to ensure that the person who is calling you and the company they are from are legitimate.
- Check to see if the salesperson is registered with the Alberta Securities Commission or the Investment Industry Regulatory Organization of Canada.
- Do not give out any personal or sensitive information over the phone – a legitimate caller would not ask for this type of information over the phone.
- Report the scam – If you believe that a cold call you received may be a scam, report it to your local securities regulator.
Cold call scams aren’t limited to investments
Knowing what a cold call is when you pick up the phone is a good first step to protecting yourself. Other than ‘boiler room’ investment frauds, common cold call scams include ‘computer repair’ scams and‘grandparent’ scams.
Pinoy Edmonton News 