Boiler room scams
Please be aware that there have been reports from shareholders that they have received unsolicited telephone calls from fraudulent companies, offering to buy shares at inflated prices. We suspect these calls are part of a scam and would like to remind shareholders to be aware of such scams.
Information on scams
Share scams are often where fraudsters cold-call investors offering them worthless, overpriced or even non-existent shares, or offer to buy their shares at a much higher price than the current market value. The ‘boiler room’ scam has developed over recent years and there has been an increase in reports of overseas fraudsters contacting shareholders to sell and buy shares using the names, registration numbers and addresses of authorised firms and individuals in an attempt to convince shareholders of their legitimacy. While they appear to offer high returns, those who invest usually end up losing their money.
Protect yourself – FCA
You can find further information on how you can avoid being a victim of share fraud, including ‘Boiler Room’ scams at the FCA website.
Consider: if it sounds too good to be true, it probably is!
If you receive any unsolicited investment advice of this nature do not get into a conversation. Make sure you get the name of the person and organisation and record any other information you are given eg telephone number, address etc.
Check the FCA register to see if the firm is authorised by the FCA. Use the contact details on the list if you want to call the firm back.
Consider getting independent financial and professional advice before you hand over any money.
Please remember that if you use an unauthorised firm to buy or sell shares or other investments, you will not have access to the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS) if things go wrong.
Report a scam
If you have received any unsolicited investment advice or think you may have been contacted in relation to a possible scam either by telephone, by email, or via the post, the matter should be reported to the FCA by calling 0800 111 6768, or by completing the online boiler room reporting form. You should also report suspected boiler room fraud to the police through Action Fraud, which you can contact on 0300 123 2040. More information on what to do if you are scammed can be found on the FCA website.