ONLINE ANTI-MONEY LAUNDERING COMPLIANCE TRAINING

Protect yourself and your business by investing in anti-money laundering training that increases the understanding of the the anti-money laundering (AML) rules and guidelines as they pertain to various industries including, banking, insurance, financial planning, securities, gaming organizations, and more. AML compliance training from WebCE is the fast, easy, and affordable way to complete AML compliance requirements. Our comprehensive catalog of AML training courses are designed by industry experts and always up-to-date.

Need AML training for yourself?

AML compliance training from WebCE is the fast, easy, and affordable way to complete your AML compliance requirements. WebCE offers a comprehensive catalog of AML training courses, each designed by industry experts and always up-to-date. WebCE's AML compliance courses can be taken by a variety of professionals in the following industries: banking, insurance, financial planning, securities, gaming organizations, and more.


WebCE's convenient, online AML training includes interactive and traditional self-study courses with the most up-to-date industry information available. Our anti-money laundering courses can be taken for in-house compliance training, or they may be combined with and some used for insurance CE, CFP® Certification CE, Firm Element credit, and more.

 

 

Order AML Training Courses

 
  • Designed by industry experts and always up-to-date
  • Comprehensive catalog of anti-money laundering courses
  • Courses can also be used for insurance CE, CFP® CE, and Firm Element
  • 98% of customers recommend our courses to others!

AML Course Feedback from WebCE Customers

  • WebCE made a complicated subject very easy to understand. I enjoyed this course for its importance in the industry and enjoyed learning the AML more clearly.

    —Antoinette G., New Jersey
  • I have used WebCE many times. It is always precise and educational. This is the only website I will use for CE Credits. Thank you.

    —Nancy M., Georgia

ANTI-MONEY LAUNDERING TRAINING SOLUTIONS FOR BUSINESSES

The WebCE Experience

At WebCE, we not only strive to forge solutions that create connections with our students, we also strive to support professionals as professionals by giving them the essentials they need to succeed in that career for years to come. All of our courses contain quality, engaging content written by industry experts, so your business not only gets the training it needs for compliance, but also has the training that teaches how to prevent and report anti-money laundering.

1100+

Corporate Client Relationships

 


1.3 Million

Courses Ordered

 


965K+

Active Users

 


75K+

New Users

 


500+

New Courses


98%

Customer Satisfaction

 

The Boiler Room Scam: How to Protect Yourself

by Julie Mendel, SILA-A, CDEI | Jun 17, 2022
Boiler Room Scams: How to Protect Yourself

Securities professionals have a responsibility to help protect their clients and their clients’ investments. But as the ways people communicate have changed with advancements in technology, protecting your clients from scammers has become more difficult than ever.

Scammer tactics have evolved along with technology and changing communication methods. One older scam tactic that has seen a revival is “cold calling” boiler rooms and their modern investment scheme equivalents.

What Are “Boiler Room” Scam Operations?

According to FINRA’s National Cause and Financial Crimes program, boiler room operations are still used to pitch dubious investment schemes. Typically run as outbound call centers, boiler rooms are characterized by high pressure sales pitches from promoters targeting retail investors with highly speculative—oftentimes fraudulent—investments. And this goes beyond phone calls; today’s boiler rooms also rely on more modern means to contact potential investors, such as messaging apps and social media.

Regardless of the method of contact, the scammer’s goal is the same: Use high pressure tactics and persuasive language to convince investors to purchase specific investments that will ultimately enrich the scammer. 

Red Flags of a Boiler Room Scam

Below are a list of red flags that could indicate a “boiler room” or similar investment scam.

  • The Unsolicited Pitch. One key red flag is an unsolicited investment pitch. An investor should be suspicious if contacted out of the blue. Why were they selected? If they have shown interest in higher risk investments in the past, or been previously victimized by a scam, it’s possible the promoter found their name on a lead list (sometimes called a “mooch list”). If the promoter had a golden ticket, why share this opportunity rather than cash it in for themselves?
  • The Hard Sell. Promoters use hard-sell tactics to pressure investors into buying shares that promise high returns on "can't miss" investment opportunities. Scammers often rely on the tactic of “phantom riches” to paint a picture of wealth off an investment and claim time (or product) is scarce. In many cases, boiler rooms pitch microcap securities or other speculative investments for which limited information is available as they are more susceptible to this type of fraudulent activity.
  • The Unlicensed Promoter. Callers may claim to work for organizations that offer stock recommendations. However, in many situations, the organizations are not registered with FINRA, not associated with any FINRA-registered firm and, in most cases, not involved with any legitimate business entity at all. The callers themselves may use fake names and credentials, disguise their phone number to look like a known broker-dealer or firm, or create a new website to appear more credible. Caller ID or website spoofing may be signs of a broker imposter scam.
  • The Pump and Dump. Fraudsters sometimes engage in “chart building” (a form of manipulative trading) ahead of a cold calling campaign to create the illusion that the stock is on an upward trend and starting to gain traction. This could give a distorted impression of the actual market value of a particular security and be a sign of a "pump-and-dump" scheme. 

What Can You Do to Protect Yourself?

There are several ways you can stay vigilant and protect yourself and your money from ‘boiler room’ and other investment scams.

  1. Decide now to decide later. Even if the claims sound plausible, do not say "yes" to stock purchases from an aggressive cold caller or social media promoter, particularly if the stocks being recommended are very low priced. The best fraud pitches are designed to sound believable and counter every possible doubt or opposition. Learn to recognize the tactics fraudsters use, and don't feel guilty about hanging up on a cold caller.
  2. Check with regulators and other third parties. Use FINRA BrokerCheck to verify whether a firm and individual are registered to sell securities or give investment advice. And use internet searches to double-check the validity of addresses, phone numbers and other information about the organization or individual. Also check the public disclosure information for the investment using the SEC’s EDGAR filings, especially if the promoter claims the stock is—or is about to be—listed on an major exchange.
  3. Research the promoter. Fraudsters constantly change the names of their stock promotion outfits and set up new websites to distance themselves from the old outfit, which may have garnered regulatory attention or developed a poor reputation with previous investors. The same group contacting you could be behind several different names. Perform a search on well-established website domain registration databases to see how recently the website was created and by whom. Also conduct a general internet search on the promoter’s name along with terms such as “complaints” or “scam” to see whether others may have complained about the promoter.
  4. Don’t give second chances. Common boiler room practice is to follow up to see if you purchased the stock they recommended. If you haven't invested, they will keep pressuring you. If you have invested, they will try to convince you to invest more.
  5. Remain vigilant. Remember, not all boiler rooms “cold call” investors by telephone. Some go through messaging apps, social media and other means. They may even use subscription services or newsletters, sometimes charging over $1,000 a year. Investors might want to think twice before paying money for stock picks from individuals who are not regulated, licensed financial professionals—or relying on tips obtained through social channels. Even if not required to be registered, the promoter could well have a conflict in making their picks. Moreover, investors targeted by boiler room perpetrators may also be targeted in other non-securities-related scams around the same time. Be on the lookout for multiple scam attempts in close proximity to one another.

One of the best ways to avoid unsolicited calls and potential scams is to equip your phone with a caller ID device or service—and if the number is unknown to you, don't pick up. Many scammers won't bother to leave a message on your voicemail. If you do answer and the caller begins an aggressive pitch, calmly say no and hang up the phone.

Learn More

To learn more, you can order from a wide variety of online finance and securities courses. To order courses, visit the WebCE Catalog or click the button below..

WebCE Catalog