Although many investors know of boiler-room scams, some still fall for them and get conned into buying worthless or non-existent investments multiple times.

In its Dr Wise column published today, the Securities & Futures Commission said classic tricks pulled by fraudsters still work and even well-educated, experienced professionals sometimes become victims of investment scams.

According to a 2004 British Financial Services Authority survey of boiler-room scam victims, the majority were male with 30% being professionals or company directors. In its 2006 survey of boiler-room victims most were found to be experienced investors with 41% having been investing for more than 11 years.

To fraudsters, educated professionals hold a certain appeal - they have the money, are too busy to do any research, and are open-minded about investing - the commission said.

Prevention tips 

Fraudsters are continually adjusting their tricks to make scams seem more plausible. The existence of a so-called "suckers" list which contains contacts and information of victims of investment scams, also makes it easier for people to be approached twice by fraudsters.

The commission reminded investors to stay alert when receiving any unsolicited offer of investing opportunities, and should always ask why and say "no".

They should never rely solely on websites and information provided by the caller. Instead they should make use of independent sources such as the commission's alert list and those of overseas regulators, to verify the authenticity of the firms and products they are offered.

Boiler room frauds are particularly difficult to prosecute given the cross border nature of their operations, the commission said. It urged people to report suspicious investment offers promptly with as much information as possible.