The Securities and Exchange Commission recently charged operators of two Long Island, N.Y., financial-services firms with scamming investors, many of them seniors, out of more than $10 million. The brokers used high-pressure tactics and false information to persuade victims to buy thinly traded securities in dubious and shady ventures.
Boiler rooms—call centers where sales reps hawk investments—gained notoriety in the 1990s, but they’re just as prevalent today, says Lori Schock, director of the SEC’s Office of Investor Education and Advocacy. Although they still rely heavily on cold calling, crooks have added social media and e-mail to their arsenal of marketing tactics.
The eight-year-long bull market has only made it easier to scam people, Schock says. When coupled with low interest rates, promises of high-earning opportunities can sound too good to pass up, especially for retirees.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
If someone pressures you to make an immediate decision, it’s likely a scam. A coId call from someone you don’t know is also a red flag, Schock says. Investors should ask themselves, “If it’s such a great investment, why are they calling me?” Truly great investments, she says, sell themselves.
-
Jabil Stock Pops After a Beat-And-Raise QuarterJabil stock is higher Wednesday after the electronics firm beat earnings expectations and raised its full-year outlook. Here's what you need to know.
-
UBS Global's Solita Marcelli: It's a Green Light for U.S. Stocks in 2025A strong economy, rate cuts and continued AI spending should support stocks in the new year, says UBS Global's chief investment officer, Americas.
-
Fed Cuts Rates Again: What the Experts Are SayingFederal Reserve The central bank continued to ease, but a new administration in Washington clouds the outlook for future policy moves.
-
Fed Goes Big With First Rate Cut: What the Experts Are Saying
Federal Reserve A slowing labor market prompted the Fed to start with a jumbo-sized reduction to borrowing costs.
-
Stock Market Today: Stocks Retreat Ahead of Nvidia EarningsMarkets lost ground on light volume Wednesday as traders keyed on AI bellwether Nvidia earnings after the close.
-
Stock Market Today: Stocks Edge Higher With Nvidia Earnings in FocusNvidia stock gained ground ahead of tomorrow's after-the-close earnings event, while Super Micro Computer got hit by a short seller report.
-
Stock Market Today: Dow Hits New Record Closing HighThe Nasdaq Composite and S&P 500 finished in the red as semiconductor stocks struggled.
-
Stock Market Today: Stocks Pop After Powell's Jackson Hole SpeechFed Chair Powell's Jackson Hole speech struck a dovish tone which sent stocks soaring Friday.
-
Stock Market Today: Stocks Drop Ahead of Powell's Jackson Hole SpeechSentiment turned cautious ahead of Fed Chair Powell's highly anticipated speech Friday at the Jackson Hole Economic Symposium.
-
Stock Market Today: Stocks Rise After Jobs Data Lifts Rate-Cut OddsPreliminary data from the Bureau of Labor Statistics shows job growth was lower than previously estimated.
