The Financial Services Authority issued its biggest blacklist yet of firms that investors need to be extremely cautious of before handing over any cash. The list - which has tripled in size in a year - is an attempt by the watchdog to alert investors to potential cowboy firms that operate scams using heavy handed sales ploys to convince them to buy worthless shares. The watchdog has also warned of a new scam that means some people are being stung twice.
Commonly known as "boiler rooms", these unregulated firms often exist only on paper as a front for flogging shares with the promise of extraordinarily high returns when in reality they may be nearly worthless.
Thousands of investors have been caught out by scams where very slick, convincing and persistent salespeople ring up and verbally bludgeon them into parting with cash - usually with the line that the investor is getting in "on the ground floor" and by insisting they hand over cash immediately or lose out on the "opportunity" altogether.
More
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment