Have you ever been on the receiving end of an aggressive sales call?
Each year, thousands of people fall victim to so-called boiler room schemes. The US Securities and Exchange Commission defines boiler room schemes as large-scale operations designed to lure in as many people into an investment scam as possible, often using high-pressure sales tactics. They typically do this by cold-calling or soliciting through emails, text messages, and social media, often flouting SEC regulations.
The goal of the scammer is to make as much money as possible. They claim that they can make this happen for you, too. The catch? They use fake investment firms and shell companies to convince you to take a chance on fictitious investments.
International Fraud Awareness Week
If you haven’t heard of this before, consider yourself lucky. This week, as part of International Fraud Awareness Week, IRS Criminal Investigation hopes to spread the word about these schemes—and hopefully stop the schemers before they find more victims. IRS-CI is the criminal investigative arm of the IRS. While other federal agencies, such as the FBI, may chase financial criminals, the IRS is the only federal agency that can investigate potential criminal violations of the Internal Revenue Code. They are often called in to “follow the money” in these kinds of crimes. You can read about some of their recent cases and priorities here.
Boiler Room Schemes
The SEC says that boiler rooms rely on cold calls utilizing…
