The official website of the US Futures Trading Commission (CFTC) announced on December 28 that it imposed a heavy fine of 3.4 million US dollars on the foreign exchange trading company Richmond Global for using fraudulent means to illegally manipulate customer foreign exchange funds. This company is a typical foreign exchange "boiler room" company. What is a boiler room? Let me tell a story. One day, Jenny received a call from a stranger, Mr. Huo, who claimed to be a senior investment consultant of a Jiazhijia Investment Company from Antigua. Mr. Huo introduced to Jenny a stock that is about to be sold for the first time on the Nasdaq market. If she subscribes for the stock from Mr. Huo, she can enjoy a 40% discount on the public sale price. Although it seemed very attractive, Jenny refused because she knew nothing about American stocks. However, Mr. Huo still kept calling Jenny, and she finally agreed to buy 4,000 shares and deposit 24,000 US dollars into a bank account in Hong Kong. Three months later, when Jenny wanted to sell the relevant stocks to make a profit, she realized that she could not contact Mr. Huo and a company. Just as Jenny was in despair, another Mr. Hu from an unbeaten investment company called her and offered to buy her shares at an attractive price. However, she must pay a $1,800 cancellation fee before the transaction. Because Jenny feared that Mr. Wang and Mr. Huo were the same gang, she contacted the Securities Regulatory Commission. At this time, she was informed that Jiazhijia Investment Company and Unbeaten Investment Company were suspicious boiler rooms and had been included in the "List of Unlicensed Companies and Fraudulent Websites" of the China Securities Regulatory Commission. The above story is a typical example of boiler room scam. The business location of the boiler room is often a room filled with sweet-spoken, seemingly professional business representatives who call and stalk investors day and night, and pressure investors to lobby for investment in accordance with the same carefully designed script. Because sales representatives often use various methods to cook materials (ie, sales techniques) to inspire a warm atmosphere, and to make the finished products look more delicious and delicious than they actually are, they have the title of "boiler room". When the first investor falls into a scam, the boiler room operator will jump for joy and attempt to further deceive more investors. The company uses deception to solicit funds from customers. In the process of soliciting funds, the company provided false promises of high returns and did not disclose the fact that the commission charges implied in the transaction. In the financial statement, Record the commission income as a transaction loss. Make false statements about trading risks and their trading experience and their past trading performance. Moreover, misappropriating customer funds. Summary of experience: What are the fraud tactics used by scammers? In most cases, boiler room operators contact investors through telephone, email, and fax, and never meet with investors in person. They often use "virtual offices" (such as business centers and secretarial companies, etc.) as their business addresses, but in fact, they operate in other places, making it difficult for people to track their locations. The investment products they promote may include stocks that are about to undergo an initial public offering, over-the-counter transactions, or mosquito-type stocks (that is, stocks that are sparsely traded and have a very low market value), or unpopular products (such as commodity options traded in overseas markets) . Moreover, the investment may seem quite attractive, such as offering incredibly high return guarantees or special discounts. The scammer may also pretend that the investment is restricted to a certain person for a short period of time, forcing investors to agree to the investment as soon as possible. Fraudsters may also set up beautiful websites and print exquisite company brochures to boast about the performance of the company and its management team. Some scammers may even put the official mark of the regulatory agency on their documents or website, making it look more like a legitimate company. In addition, scammers may forcibly send transaction receipts to investors, claiming that they have bought stocks for investors and demand payment. In fact, investors never agreed to buy these stocks. When investors want to sell the relevant stocks, they usually find that they cannot contact the relevant business agent or its company. These boiler rooms may have been moved to other locations for operation, and the money with investors disappeared without a trace. To make matters worse, investors may find that the stock certificates in their hands turn out to be worthless forged documents. In some cases, the boiler room operator may pretend to be another broker to deceive the same investor again. They will claim to be able to assist investors in selling stocks previously purchased by the first company that they can no longer contact, but investors have to pay certain fees in advance. Boiler room operators contact investors through telephone, email and fax, and never meet with investors in person. They often use "virtual offices" (such as business centers and secretarial companies, etc.) as their business addresses, but in fact, they operate in other places, making it difficult for people to track their locations. The investment products they promote may include stocks that are about to undergo an initial public offering, over-the-counter transactions, or mosquito-type stocks (that is, stocks that are sparsely traded and have a very low market value), or unpopular products (such as commodity options traded in overseas markets) . Moreover, the investment may seem quite attractive, such as offering incredibly high return guarantees or special discounts. The scammer may also pretend that the investment is restricted to a certain person for a short period of time, forcing investors to agree to the investment as soon as possible. Fraudsters may also set up beautiful websites and print exquisite company brochures to boast about the performance of the company and its management team. Some scammers may even put the official mark of the regulatory agency on their documents or website, making it look more like a legitimate company. In addition, scammers may forcibly send transaction receipts to investors, claiming that they have bought stocks for investors and demand payment. In fact, investors never agreed to buy these stocks. When investors want to sell the relevant stocks, they usually find that they cannot contact the relevant business agent or its company. These boiler rooms may have been moved to other locations for operation, and the money with investors disappeared without a trace. To make matters worse, investors may find that the stock certificates in their hands turn out to be worthless forged documents. In some cases, the boiler room operator may pretend to be another broker to deceive the same investor again. They will claim to be able to assist investors in selling stocks previously purchased by the first company that they can no longer contact, but investors have to pay certain fees in advance. Boiler room operators contact investors through telephone, email and fax, and never meet with investors in person. They often use "virtual offices" (such as business centers and secretarial companies, etc.) as their business addresses, but in fact, they operate in other places, making it difficult for people to track their locations. The investment products they promote may include stocks that are about to undergo an initial public offering, over-the-counter transactions, or mosquito-type stocks (that is, stocks that are sparsely traded and have a very low market value), or unpopular products (such as commodity options traded in overseas markets) . Moreover, the investment may seem quite attractive, such as offering incredibly high return guarantees or special discounts. The scammer may also pretend that the investment is restricted to a certain person for a short period of time, forcing investors to agree to the investment as soon as possible. Fraudsters may also set up beautiful websites and print exquisite company brochures to boast about the performance of the company and its management team. Some scammers may even put the official mark of the regulatory agency on their documents or website, making it look more like a legitimate company. In addition, scammers may forcibly send transaction receipts to investors, claiming that they have bought stocks for investors and demand payment. In fact, investors never agreed to buy these stocks. When investors want to sell the relevant stocks, they usually find that they cannot contact the relevant business agent or its company. These boiler rooms may have been moved to other locations for operation, and the money with investors disappeared without a trace. To make matters worse, investors may find that the stock certificates in their hands turn out to be worthless forged documents. In some cases, the boiler room operator may pretend to be another broker to deceive the same investor again. They will claim to be able to assist investors in selling stocks previously purchased by the first company that they can no longer contact, but investors have to pay certain fees in advance. For example, offering incredibly high return guarantees or huge discounts. The scammer may also pretend that the investment is restricted to a certain person for a short period of time, forcing investors to agree to the investment as soon as possible. Fraudsters may also set up beautiful websites and print exquisite company brochures to boast about the performance of the company and its management team. Some scammers may even put the official mark of the regulatory agency on their documents or website, making it look more like a legitimate company. In addition, scammers may forcibly send transaction receipts to investors, claiming that they have bought stocks for investors and demand payment. In fact, investors never agreed to buy these stocks. When investors want to sell the relevant stocks, they usually find that they cannot contact the relevant business agent or its company. These boiler rooms may have been moved to other locations for operation, and the money with investors disappeared without a trace. To make matters worse, investors may find that the stock certificates in their hands turn out to be worthless forged documents. In some cases, the boiler room operator may pretend to be another broker to deceive the same investor again. They will claim to be able to assist investors in selling stocks previously purchased by the first company that they can no longer contact, but investors have to pay certain fees in advance. For example, offering incredibly high return guarantees or huge discounts. The scammer may also pretend that the investment is restricted to a certain person for a short period of time, forcing investors to agree to the investment as soon as possible. Fraudsters may also set up beautiful websites and print exquisite company brochures to boast about the performance of the company and its management team. Some scammers may even put the official mark of the regulatory agency on their documents or website, making it look more like a legitimate company. In addition, scammers may forcibly send transaction receipts to investors, claiming that they have bought stocks for investors and demand payment. In fact, investors never agreed to buy these stocks. When investors want to sell the relevant stocks, they usually find that they cannot contact the relevant business agent or its company. These boiler rooms may have been moved to other locations for operation, and the money with investors disappeared without a trace. To make matters worse, investors may find that the stock certificates in their hands turn out to be worthless forged documents. In some cases, the boiler room operator may pretend to be another broker to deceive the same investor again. They will claim to be able to assist investors in selling stocks previously purchased by the first company that they can no longer contact, but investors have to pay certain fees in advance.
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