You may have a certain image in your mind when it comes to a shareholder. It is likely that you will think of some high rolling business professional who spends their days lounging in style and then making some high pressured decision about buying and selling. The reality is very different and to be honest, everyone can be a shareholder. There will be people that buy shares for sentimental reasons, as opposed to monetary reasons, and these are the sort of people who may find themselves at risk of being caught by a boiler room scam.
One area where people have bought a lot of shares for sentimental reasons as opposed to any genuine reason is in backing a football team. When it comes to things that defy logic, you’ll find that being a football fan comes at the top of the list. Watching grown men kick around a ball may not seem like a lot of fun but there are people who hold the game and their club close to their hearts, and the chance of owning a small piece of the club is a major thing for most people. This isn’t going to be an investment opportunity to make a profit in the future; this is something that you do because it feels right or because you want to pass on something to your kids.
This is why this sort of shareholder is an interesting one for boiler room scams. These people clearly don’t have much of an interest in the general stock market, so it is not as if they are going to be enticed by the thought of getting involved and playing the stocks and shares game. However, everyone around the world is interested in making a bit more money and this is why boiler room scam artists will have an opportunity to reach out to these people. Even if you don’t have plans to buy shares, you’ll find that when an offer is presented to you in such in a manner, there will be a level of interest.
Many Football Teams have had share issues
In recent years, there have been a number of share warnings issued by major football teams with respect to their shares and any contact that shareholders may receive. Scottish giants Celtic have had two well received share issues that saw many people flock to the aid of the club, putting it on a stronger financial footing. Sometimes there are share issues in football clubs that aren’t successful, the initial Rangers football club in Glasgow had a disastrous share issue which their fans ignored in droves but when the new Rangers launched a share issue, their fans backed it in great numbers. This means that there isn’t always logic involved with these shares, which is exactly the sort of area that a scam artist likes to operate in.
These boiler room scams take place due to the fact that personal details and telephone numbers are located in shareholder lists, providing fraudsters with the opportunity to get in touch with people and then provide them with a focused sales pitch. If you are selling something to a football fan, surely the best way for you to build a connection with them is to talk about their football club or a recent game. This is something that can be set up with the use of a minimal script and before too long, there is an opportunity for the fraudsters to have developed a genuine connection with the people that they want to sell to.
The Seller will want to Create a Bond with the Shareholder
This then allows them to create a bond that will allow them to offer advice and say that they are providing an offer that can really help someone. Given the association that the shareholder has with their team, they will be less inclined to think of this as a scam, and more as something that will provide them with a genuine chance to make some more money. You can probably even guarantee that the “salesperson” will make reference to the ways in which the shareholder can support their team with the profits made from these new shares.
There is no doubt that people of all backgrounds and walks of life are at risk from boiler scam fraudsters. No matter how many or how few shares you have bought in your time, you’ll find that there is a need to be aware that you are risk from fraudsters carrying out boiler room scams.
Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 9 years but has been writing for as long as he can care to remember. When Andrew isn’t sat behind a laptop or researching a story, he will be found watching a gig or a game of football.