Boiler rooms scams can take many different forms, some of which are set out below:
Offers to buy shares you currently hold at an inflated price but then request money from you upfront as a bond or other form of security;
Offers to sell you shares in a company you have never hear of which turn out to be worthless, overpriced or even non-existent shares;
Offers of help from “recovery rooms” to assist those defrauded by boiler rooms. They approach victims of boiler room fraud and, for an upfront fee, promise to review their case and obtain reimbursement from a European Court fund or other legal avenue.
More information on different types of scams and what you should do can be found on the Financial Conduct Authority (FCA) website.
Should you receive any unsolicited investment advice, receive any offer to sell shares you currently hold or receive an offer to buy shares in another company:
Ensure you obtain the correct name of the person calling and the firm they represent;
Check that they are authorised by the FCA prior to getting involved, and contact the firm using the details on the register;
Report the matter to the FCA either by calling the Consumer Helpline on 0800 111 6768, e-mail [email protected] or complete the online share fraud reporting form. Please note that if you deal with an unauthorised firm, you will not be eligible to receive payment under the Financial Services Compensation Scheme;
Report the matter to the police through Action Fraud contact centre on 0300 123 2040;
If the calls persist, hang up.