Here you can consult the CNMV’s advice to avoid being deceived by a “boiler room”. This term is used informally to define those entities that offer and provide investment services without being authorized to do so. They are dangerous because, in most cases, the apparent provision of such services is merely a cover to misappropriate their victims’ capital, leading them to believe they are making a high-yield investment.
Tip 1
Verify that the entity is authorized and that the company has not been the subject of a warning by the CNMV or other supervisors. In case of doubt, please contact us.
Tip 2
Remember that “boiler rooms” are dangerous and intend to deceive you. If you are suspicious, ask questions. Adopt an active attitude. Ask questions about the characteristics of the service and the investment being proposed to you. Obtain information in writing.
Tip 3
Be wary of the following warning signs and common techniques:
Tip 4
Watch out for fraud via the internet and social media. Do not be deceived by the sophistication of some websites. Stay alert to unsolicited offers through your social media profiles. Do not be misled by the affinity of your social “followers”.
Tip 5
Be wary of high returns without risk. Be wary of complex products. Do not invest in what you do not understand.
Tip 6
Pay attention to commissions and expenses.
Tip 7
Ensure that the products offered actually exist and verify the information provided regarding the price of the securities they wish to sell.
Tip 8
We are all exposed to fraud. Be suspicious if they do not request information: authorized financial intermediaries offering a product must assess its appropriateness (experience and knowledge) and/or suitability (experience and knowledge, financial situation, and investment objectives) through a profile or questionnaire.
Tip 9
If you cannot get your money back, do not continue making contributions.
Tip 10
Inform the CNMV of any suspicious fraudulent incident and report what happened to the Police or the corresponding Court.
