A team of scam artists set up a makeshift office, called a “boiler room” and work in stages. The scam artists first identify potential victims. They might use a phony survey to find out about your investment experience, offer you free research, or try to get information like your mailing address, phone number and e-mail address.
Next, someone else on the team will call you back with the sales pitch, often calling multiple times. The caller may boast of a business idea that sounds probable, usually in a sector that’s in the news. Here’s the catch: the investment may not exist. This is a boiler room scam.
By the time you realize you’ve been taken, the scam artist will have closed up shop and moved on to another scam. You’ll likely never see your money again. These networks of scam artists are highly organized, with many operations selling their victim lists to other boiler room scam artists.