If it sounds too good to be true, it probably is. If a stranger calls you out of the blue and tries to sell you shares in companies you are not familiar with, be extremely cautious. You could be talking to fraudsters.

These may be part of a scam operation to entice you into purchasing fictitious shares. These individuals use persuasive means, such as not allowing you time to think about your decision to 'invest'.

They may also ask you not to talk to anyone about the 'investment' offer. It is unusual for firms to call you, so be wary if you are not expecting a call.

Should you fall victim to these fraudsters' offer, you may be left with worthless shares, shares in companies which do not exist.

These types of scams are sometimes referred to as 'boiler room scams', and are usually based overseas.

Before handing over your hard-earned money, it is absolutely imperative to check with the financial services regulator, the Malta Financial Services Authority (MFSA), to verify whether such companies do exist, and whether the people who have contacted you are licensed and authorised to provide such services.

The MFSA publishes warning lists of firms it is aware of, which operate in this manner, on its website under the heading 'Warnings'.

However, one must bear in mind that these firms change their name frequently, and hence should you not find the particular name on the warning list, this does not mean that it is genuine or legitimate.

For queries, you can call the MFSA Consumer Complaints Unit on freephone 8007 4924, or visit www.mfsa.com.mt/consumer/complaints.htm.