Monday, October 17, 2011

Company Share Frauds/Stock Broker Frauds

Another fraud concerning investments is happening today. This is an investment fraud about the stock market. A criminal will call a private citizen and offer company shares or stocks to the individual. The caller will identify himself as stock broker for a certain brokerage firm. He will present data about what is happening in the stock market today. He will quote stock terminologies and figures and sound like he is somebody who knows what he is talking about.

He will offer stocks at lower prices and freebies. What is more interesting is he will offer a shareholders account amounting to a $5000 without you buying any stock. He will tell you that you just need some personal information about you and will ask for your credit card number to pay for a minimal processing charge. Since $5000 sounds so promising, you will then give out your credit card number that easily. Afterward, you will see that you have been charged an amount much more than what the caller said, and worse, there really is no shareholder account opened up for your name.

With the discounted stock prices, the caller will offer you company shares that are cheaper than the ongoing share prices saying that the said company offers only to some chosen stock investors. Notice that they do not even know if you are really a stock investor or not but they will shoot at the moon for if you really are an investor, they think that it would be easier to sell stocks to you because you understand and know already how to buy stocks. So, it is really just them trying their luck out. And if they are too lucky, they will find a victim who will be willing to buy stocks. Although, of course, the victim will realize that he bought a non-existing stock after all.

Lots have been victimized with this scheme. If you are one who really invests in the stock market, somehow, you will be able to identify that this is purely fraud. But if you are someone who never tried investing in the stock market before, you might believe this scheme. If you intend to invest in the stock market, make sure that you are dealing with legal and authorized stock brokers. Or if you want to do it yourself, make sure that you have made yourself informed properly on how to do stock trading and investing and do not really on anyone especially if you do not really know the person.

When you receive calls like this, get the entire caller’s information on phone directory online. Once you got hold of the caller’s information, report promptly to authorities like the FTC and the police. They will be of great help to you to fight these criminals. Share the story too, so that more people will be aware that such fraud is going around. Keep your guards up and be safe.

1 comment:

  1. I found your website perfect for my needs. It contains wonderful and helpful posts. I have read most of them and learned a lot.
    online trading