forum scams

saw this on another link and thought readers should beware ESPECIALLY with IMI

Once upon a time, an investor would get a phone call from a broker. The broker would hype the Perspective Investor on any number of schemes. These schemes were designed to specifically to appeal to the Perspective Investors' greed. Once the broker had secured the money the Perspective Investor would soon realize he had been had. Welcome to a boiler room operation.

As the regulators have worked diligently to take out these boiler rooms, the scammers have evolved to a more efficient risk-free platform. This newest evolution is the Internet where the Boiler-Net Room can eliminate prosecution because they do not use the phone nor do they use the US Postal Service or any type mailing service. The newest transportation vessel is the Internet.

Now Boiler-Net Rooms are groups that gather and trade in unison. Modern day Boiler-Net Rooms are coordinated groups using computers and the internet to make group posting on message boards. There they develop their cult of zombies to grow the reputation of the group as being #1 in making money on their stock opinions. Special email groups are developed from the chat boards.

They hype insider information and advanced notice of key events that can affect the stock. Negotiating for free shares or front loading silently, Boiler-Net Rooms have their own set of bashers and pumpers. A lot of times these are the same people that change their alias. Some chat boards have an ignore feature. However, they have easily found a way around this. When the pumper or basher, depending on what the guru is hyping or bashing, gets too many ignores placed upon them they merely change their aliases.

It is estimated that unwary investors lose billions a year to investment fraud promoted over the Internet. Day trading/Momentum trading scams and high-tech information schemes are among investments most recently heavily promoted by the Internet.

This is a post that is designed to provide investors with self-defense tactics to fight off the promotion of investment scams by "Boiler-Net Rooms," the internet hype operations from which these people post to promote and bash abusive and fraudulent attacks as they make their oxymoron trades and deals.

How to Spot a "Boiler-Net Room" Scam on the Internet:

Hypsters/Basher tactics. A group of organized posters suddenly appear on a message board with bad or good innuendoes, insinuations, tidings, etc. and become extremely abusive, questioning everything, and making personal attacks against anyone with the intelligence, who would dispute them. Rarely, do these types have factual information and live in the world of POS and PAS. (Purposely Omitted Syntax / Purposely Added Syntax) They are accumulating or selling depending on their agenda. One oxymoron that is popular is "do not believe or call the company". However, though they want you to follow them blindly on what they say they warn against doing that with someone who posts an opposite opinion from theirs.

Outrageous promises of extraordinarily low/high scenarios at high/low risk

The rule is: Toss out just enough doubt to get sells at which time the Boiler-Net Room group accumulates or toss out extreme hype to get buys which time the Boiler-Net Room sells. Boiler-Net Rooms will taint anyone that opposes them. Once this is accomplished the bashers take a break and new touters come to the chat board who disappear when the bashers come back.

A demand for an immediate decision

Boiler-Net Room operators want fast action when they want the stock to move after accumulating so they can sell or unload their free shares they negotiated for. A touting tactic most popular of present cyberday is Charting. "BUY quick or you'll miss the target for the triple top or the compression wedge breakout or perfect saucer formation." You buy before you have a chance to develop second thoughts or consult with a professional for advice. As a result, many get left holding the bag when the Boiler-Net Room sells out thus tanking the stock after the run. Then the bashers suddenly return.

Extreme price movements

Boiler-Net Rooms make market orders. This is the easiest way to get the price moving either way. MMs see the market orders coming and react instantly to the freedom to raise or drop the price in their best interest. This causes a reaction in the volume and price thus attracting momentum traders/day traders. Remember a stock price can come down just as quick as it goes up.

A reluctance to provide information about themselves or fundamentals on the investment

If a Boiler-Net Room is uncovered, it may be subject to state or federal action FWIW. Therefore, phone and conventional mail are not required because now the internet is the easiest and most wide media direct to investors. Boiler-Net Rooms can have as many aliases depending on the members of the group. They can actually be all the posters on a thread. Both pro and con aliases also depending on what they want the stock to do.

Mumbo-jumbo about Technical Analysis information

In order to get the most attention, the alias on the other end of the cyberspace line may tell you that this is a "sure thing" or "a total loser" depending on where they want the price to go. No proof, but a charting band or compression wedge or even a saucer says so. With the newest tout vessel of Technical Analysis (Charting), the Boiler-Net Room try to cover themselves for they only interpret (give their opinion) the charting.
Example: it is going to fly over .35 or .40 when it breaks the triple top then it tanks to .20 when that target is reached then suddenly the charts say it is going to .01 somewhere. Organized bashers now fill the message board.

Delayed delivery on the inside information. This is a classic "red flag" of an investment scammer. Beware of promises involving unrealistic targets. Points where the price of a stock is supposed to breakout and fly or tank to nothing. You may end up holding at the peak and it tanks.



Many investments promoted over the Internet are legitimate. The wise investor will follow the Common Sense Simple Steps in order to be able to distinguish the "good" from the "bad" in Internet postings. Most of the posters are legit private investors that are just giving their opinions. However, the Internet is infamous for secret agendas and IDs.

Remember if you buy on action or technical without first knowing the fundamentals, you stand a chance of losing all your money when the wave is gone. Thus you are caught in the wake of a Boiler-Net Room.



Credit for post to Gary Swancey