Watch Out for Boiler Room Fraud: A Growing Threat to Your Money

Boiler room fraud is a serious scam where criminals trick people into investing in fake or worthless products. These scams are clever, convincing, and often hard to spot until it’s too late. The Belgian Financial Services and Markets Authority (FSMA) is warning people to be cautious and protect themselves from boiler room fraudsters.

What Is Boiler Room Fraud?

Boiler room fraud happens when scammers contact you out of the blue, usually by phone, email, or online. They offer you exciting investment opportunities, like shares, term deposits, or even crowdfunding projects. They pretend to be professionals with polished websites, official forms, and convincing sales pitches. But everything they promise is fake. Their real aim? To take your money and disappear.

How Do These Scams Work?

Here’s how boiler room scams usually play out:

• First Contact: Scammers call or email you with an amazing offer, often saying it’s urgent or exclusive.
• Fake Professionalism: They show you professional-looking websites and documents to earn your trust.
• Small First Step: They ask you to make a small investment. This often seems to work well, so you feel confident.
• Pressure to Invest More: Once you trust them, they push you to invest larger amounts, using pressure tactics like claiming the opportunity is limited or you’ll miss out.
• No Way Out: When you try to get your money back, they demand more payments or say your investments have lost value. In the end, you can’t recover your money.

Why Is It Called “Boiler Room”?

The term comes from the high-pressure tactics scammers use to push you into making quick decisions. It’s like the intense heat and pressure inside a boiler room.

How to Spot and Avoid Boiler Room Fraud

• Be Wary of Unusual Offers: If someone contacts you out of nowhere with an investment offer, be suspicious.
• Check Their Credentials: Always verify the company with a trusted financial authority like the FSMA.
• Don’t Rush: Scammers will try to pressure you into acting quickly. Take your time to think and research.
• Never Share Personal Information: Don’t give out your financial details to people or companies you don’t know.

FSMA’s Warning About Fraudulent Companies

The FSMA has flagged several companies that may be involved in boiler room fraud. These companies are not authorized to offer financial services in Belgium:

1. Bradford Venture Capital (https://www.bradfordventurecapital.com/) 
2. KW Capital Group (www.kwcapitalgroup.com) 
3. Lamarck Group (https://www.lamarckgroup.com/)
4. Millers Capital Investments (https://www.millers-capital.com/) 
5. Silverman Advisory Group (https://silvermanadvisorygroup.com/)
6. Sis Capital Partners (https://www.siscp.com/)
7. Union Wealth Management (www.unionwealthmanagement.com)

The above companies are not authorized to provide investment services in Belgium.

The FSMA therefore strongly advises against responding to any offer of financial services made by the companies listed above and against transferring money to any account number they might mention. 

If you’re unsure about an investment, contact the FSMA or another trusted authority for advice. Stay alert, and don’t let scammers take advantage of you.

 

This article was published in collaboration with the FMSA

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