The National Fraud Intelligence Bureau has been informed recently of a supposed investment scam aiming at potential investors. The alleged victims are told that IKEA, the world recognised swedish company known for their modern architectural designs of both appliances and furnitures, are due to float shares on the stock market and therefore potential investors should purchase IPO shares (Initial Public Offering) before the floatation.
In response, actionfraud and Ikea have themselves issued an article stating that this is false and there are no arrangements for Ikea to become publicly listed.
This described fraud comes under the umbrella of what is called ‚Boiler room Fraud.‘ This is when you receive contact from someone offering investment opportunities which often leads the caller requesting a ’seal the deal‘ payment by requesting bank account details over the phone. The Financial Conduct Authority (FCA) report approximately 5000 people a year contact them on suspicion that they have been subjected to investment fraud. Unfortunately, around 10% would have already issued funds to the criminals. In addition, the FCA warns that out of these victims who would have transferred money to the criminals, the probability that they will be contacted in the future by the the same operation or have their details sold to other fraudsters would be increased.
Have you received a call of this exact scenario or of a similar nature? We would like to hear from you. Let us know by commenting below OR by searching the phone number on tellows that was used to phone you and leave a comment there to assist others in their enquiry to a suspicious phone call!
We used www.financial-dictionary.thefreedictionary.com:
Floatation: Floating shares are shares of a public cooperation that are available for trading in the stock market
Initial Public Offering (IPO): The first price for which a company offers to sell stock in itself when it moves from private ownership to public trade.
We also acknowledge actionfraud.police.uk for their content published on the 13th of June: Beware of cold callers offering fraudulent sales of shares in IKEA.
Investing in new technology, developing smart ideas, innovating, outsourcing, call centers – the buzzwords of our business-minded con artists. They’re professionals and they know their stuff. 7 in 10 receive nuisance calls, texts and emails everyday, yet these large-scale scam operators are never penalized because apparently they are just “annoying” and not yet causing “substantial distress” to people.
You, as the target market of these fraudsters, should know better than their old tricks. Update yourself with these words of advice:
- Don’t give any personal information to strangers or to businesses – remember, they should already know your details!
- Ignore employment agencies asking for payment in advance
- Check your bank and credit card statements regularly and let your bank know immediately if there are any entries you don’t recognise
- Often, you can’t get lost money back, particularly if you have handed over cash. But you have more protection if you paid by credit card or a debit card.
For our weekly top 3, the approach of our scammers is always a hard sell. Strategies are aggressive and their tactics include cold calls and unsolicited pitches – as if they are really selling some products or services BUT actually no. They are disguised as telemarketers who just want to get your bank details or other personal info. Worse huh!