These are often known as ''boiler room scams'' and involve a cold-caller offering shares or property investments. Sometimes these shares and properties do exist, but are worth nothing like the amount suggested by your caller. Unfortunately, majority of people who fall for these scams are experienced investors.
Alarm bells should ring if you are called out of the blue, particularly by a company based abroad. You can see whether a firm is legitimate by checking it against the agency responsible for the registration of authorised firms in your country of residence. For example, here in the United Kingdom, the Financial Service Authority (FSA) holds the register of authorised firms. If a company is not registered it is not allowed to give any investment advice in the UK.
In
conclusion, to avoid schemes of this kind, you must always verify the merits of
an investment opportunity and also check the background of the person offering the
investment.
If
you require a more in-depth knowledge of this subject matter or any other fraud
related topic, I invite you to contact me via email,
contact@emgfraudconsulting.co.uk
Compliments of the season to you all.