Certified Fraud Examiner Practice Exam 2025 – All-in-One Guide to Master Your Certification!

Question: 1 / 400

What characterizes a boiler room operation?

A legitimate business that sells high-quality products

A call center that sells questionable investments

A boiler room operation is characterized by a telemarketing scheme where salespeople often operate out of a call center and aggressively pitch questionable investments to unsuspecting individuals. These operations typically rely on high pressure sales tactics and may involve selling stocks, bonds, or other types of investments that are often worthless or involve significant risk without proper disclosure.

In a boiler room, the focus is often on generating sales rather than on the legitimacy or quality of the products being sold. The aggressive sales tactics and lack of transparency commonly associated with these operations are what distinguish them from legitimate business practices. Other options listed refer to legitimate businesses and law enforcement activities, which do not match the deceptive and high-pressure nature of a boiler room operation.

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An undercover operation by law enforcement

A retail store specializing in legal documents

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