Boiler room scams
Many companies have become aware that their shareholders have received unsolicited telephone calls or correspondence concerning investment matters. These are typically from overseas based ‘brokers’ who target shareholders, offering to sell them what often turn out to be worthless or high-risk shares. These operations are commonly known as ‘boiler rooms’.
These ‘brokers’ can be very persistent and extremely persuasive, and the Financial Conduct Authority (FCA) has reported that the average amount lost by each investor is around £20,000.
It is not just novice investors that have been duped; many victims have been successfully investing for several years.
Shareholders are advised to be very wary of any unsolicited advice, offers to buy shares at a discount, offers to sell shares at a premium or offers of free company reports.
If you receive any unsolicited investment advice, we recommend that you:
- Obtain the name of the individual and organisation contacting you and make a record of any other information such as telephone numbers and address details
- Check if the firm is known as operating without authorisation by visiting the FCA register of unauthorised firms
- Report the matter to the FCA by calling 0800 111 6768 or filling in this online form
Details of any share dealing facilities that the Company endorses will be included in Company mailings. If you are unsure if a call is legitimate, please contact us for clarification.
If you think you may have been a victim of boiler room fraud, you should report the matter to Action Fraud on 0300 123 2040.