Stock broker fraud lawyers are on the lookout for investors who have been the victim of cold-calling fraud. Even though the number of sales calls has been reduced by the National Do Not Call Registry, securities firms still commonly use cold-calling as a tool for generating investments. Because not all cold-calls indicate fraud, cold-call scams remain a dangerous possibility for investors.
Individuals who have made investments based on a cold-call may have been the victim of fraud. Here are several indicators that a cold-call may have been a scam:
- The caller used high-pressure sales tactics. Cold-calling fraudsters often use scripts that contain a list of retorts for every possible objection and will continue to attempt a sale as long as the investor remains on the line.
- You can’t get a word in edgewise. Because these scam artists have a response to every objection, they will often try to talk over the investor in the process of convincing them that they should invest.
- The caller offers a “once-in-a-lifetime” opportunity. A “once-in-a-lifetime” opportunity that the caller claims to have received through “confidential” or “inside” information is a red flag that the investor is being scammed.
- The caller claims the investment is based on a company’s “breakthrough technologies.” These are especially dangerous because said technologies play off legitimate technologies. However, they often sound too good to be true.
- The caller refuses to send written information on the investment. Investors should always be able to receive written investment information and take their time to review it and make a decision. However, cold-call fraudsters want to push a quick decision so they will avoid sending any information. Bear in mind that fraudsters are crafty and will often agree to send information but then steer away from doing so.
- The caller is an unregistered broker. Many cold-calling fraudsters are not properly registered to sell securities, and frequently are not properly supervised. Be sure to look up the name of the broker using FINRA’s BrokerCheck to find out if they are registered.
If you have made investments based on a cold-call and suffered significant losses as a result, find out more about your legal rights and options by contacting an investment attorney at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.