With so many headlines about crypto scams, it’s easy to forget that more traditional scam types are still a problem. A married couple in the United Kingdom – Clint Canning, 44, and Eleise Wallace, 36 – were caught running a cold call broker scam that robbed victims, many of them elderly, of millions.
How Did This Cold Call Broker Scam Work?
Unlike a broker crypto scam, the cold call broker scam didn’t require any complex technical knowledge. It was one of the oldest types of scams and involved making cold calls. Many of the people targeted were elderly and not tech savvy.
Canning and Wallace came up with a name and a concept for their company, which they called Base 2 Trade. They claimed to have several offices in London. It was supposed to be a binary options investment company. Basically they were selling a scheme that would reward clients who correctly guessed the price of a company’s assets.
Instead of selling actual shares in a company, they were rewarding clients for making correct bets on the ups and downs of a company. This sounds simple enough, almost like a game or gambling depending on the point of view.
It’s interesting that the traders didn’t ask how it would be possible to make returns if there weren’t any stocks bought or sold. However, it’s clear that many of the victims of Canning and Wallace didn’t ask these questions.
Also, it was clear they were completely reliant on the pair to tell them how their trades were doing, as happens often in broker scams. If they had researched the actual gains and losses of the companies, they might have discovered the truth sooner.
By the time the couple were caught, they had robbed 173 victims of £2.7 million ($3.3 million).
At first, the victims’ accounts showed huge returns (no matter how well or poorly the company was performing). The fake brokers told their victims that they would make even more money if they invested more. After a few deposits, customer accounts showed major losses. Only then did the would-be investors realize that they had been taken advantage of.
Which Scam Types Are the Most Common?
One common misconception is that crypto scams are the most common type of fraud. Many broker crypto scams hit the headlines, and there is a lot of buzz about the blockchain
The FBI has said that crypto scams are the fastest growing type of fraud, but traditional scam types are still at the top of the list.
According to Fraud.org, a project of the National Consumers League, fake sweepstakes and free prizes are still the most common type of scams. Following that, false merchandise online, fake check and benefits frauds top the list. Also phishing, imposter and romance scams are prevalent. These may or may not involve cryptocurrency.
Although the media tends to focus on broker crypto scams, traditional broker scams are still common – like the operation run by Canning and Wallace.
What to Do if You Lost Money in a Cold Call Broker Scam?
If you’ve lost money in a cold call broker scam or a forex scam, talk to MyChargeBack right away. Since these frauds involve the telephone rather than the internet, it’s likely you used a credit card or a bank transfer to fund an account.
With these traditional payment methods, unlike cryptocurrency, you have information about who and where you sent your money to. In addition, you may be able to get a credit card chargeback from a cold call broker scam.
Talk to MyChargeBack professionals and we will investigate your case and map out a strategy that will give you a head start on the road to fund recovery.
Have You Lost Money to Cold Call Broker Scam? Talk to MyChargeBack Professionals Today
If you have lost money to financial fraud, talk to the MyChargeBack team. Our investigations will provide evidence to bolster your claim. Our investigation reports are essential for tracking down your funds and getting you started on the road to fund recovery.