Lessons from Stockbroker Scams
Waiting around for the Arsenal Man U showdown this Sunday, I skimmed the Sunday Telegraph’s Business section. Apparently, some shady cold-call operations are netting an obscene £600k a month conning unsuspecting gold-diggers.
The scams come in various guises, including:
- selling ficticious shares, even creating fake corporate websites to back-up wild stories
- selling types of shares that do not exist
- selling information purporting to give the early nod on amazing news/discoveries/breakthroughs and the like which doesn’t exist
The regulatory body, the FSA, calculate each person falling for the high-pressure tactics, which clearly leave morals at the door, loses £20k.
1 in 25 people take such calls. Many I assume, giving in after relentless pursuit by such a con-artist. Two quotes from the article show how success can be achieved by the scamming seller:
persistence – “often they will phone several times over a period of several weeks, without revealing any specifc details of the investment in an effort to build confidence in the scam”
culture – “the management propagate a get-rich-quick holiday culture to entice salesmen to turn a blind eye to the reality of their deeds”
The usual line trotted out in such situations, is that ‘if something sounds too good to be true, it probably is….’