Boiler room fraud is the common term for the ruthless mis-selling of worthless or bogus stocks and shares for the sole purpose of defrauding cash from unwitting investors. UK investors are collectively losing at least £200 million per year in this way.
Organised and ruthless criminals run ‘boiler rooms’ with a sales pitch designed to play to an innocent investor’s appetite and desire to make a profit.
Imagine if you were contacted with a promise of a sure win, wouldn’t you be interested in trying to make more money? However, by participating in such an investment, you are most likely to come away with nothing. You could lose your initial investment and any rights to make a formal complaint or claim compensation. Most boiler room scams are operated from overseas in ‘safe’ jurisdictions that are immune from UK law.
It is not just novice investors who are conned into giving away their hard earned money. The vast majority of victims are experienced investors. Remember – It is against the law to cold call a person to try to sell shares or other investments. If you haven’t invited the call just hang up.
You can visit the FCA website to check if a firm is legitimately registered to manage shares.
For more information on Boiler Room Fraud, visit www.cityoflondon.police.uk.