Dr Wise on Boiler Room Scams

Dr Wise today reminds investors to say “no” to boiler room operators.

The SFC today publishes the August issue of Dr Wise’s Column, “Don't Be Burnt by Boiler Rooms”, on its InvestEd website at www.InvestEd.hk.

Boiler rooms are cold calling frauds involving high pressure sales techniques, over the phone, Internet and email, to sell worthless or non-existent investments. Operators, usually from overseas, sometimes with fake local addresses and real Hong Kong bank accounts, and often posing as sophisticated financial firms, offer their victims what appears to be an attractive investment opportunity. They disappear after getting money from their victims.

Investors should research investment opportunities using reliable sources and be sceptical about what they are told and read. They should simply hang up on cold callers, delete their emails and throw out unsolicited mails and faxes. They should never send money to strangers.

Dr Wise is a fictitious character. Through his column, he talks to investors about the key issues of investing and regulatory thoughts.

Dr Wise’s Column is published on the last working Tuesday of every month. From time to time, additional articles in the form of special issues may be published on topical matters. The column is posted under the “Features & Dr Wise” section of the InvestEd website. Investors are welcome to send their feedback and questions to Dr Wise by email to InvestEd@sfc.hk.

Ends

Notes:

1. News media are welcome to carry the column with acknowledgement of the source of the information.