Boiler room fraud
Have you fallen victim to boiler room fraud? Get in touch and take the first step to recovering what’s rightfully yours.
Understanding a boiler room fraud
What is boiler room fraud?
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What is a boiler scam fraud?
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Where is likely to be targeted?
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How does the fraud work?
How to avoid boiler room scams
Exploiting emotion
Start your claimFalse promises
Are pump and dump scams linked to boiler room fraud?
Start your claimWhy WRS?
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Get a bespoke recovery programme for personalised support and the most cost-effective plans.
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Care around the clock
Being a victim of fraud can be devastating. We offer expert guidance and support when you need it.
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Recovering over £40,000,000 for clients like you
Over the past 3 years, we’ve recovered more than £40,000,000 for our clients. It’s thanks to our team of solicitors and recovery claim specialists who trace and recover the investments you’ve lost from scams. Plus, we offer a no-win, no-fee service. You won’t pay a thing unless we recover your money.
Frequently asked questions
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Are boiler room fraud brokers legitimate
Often, boiler room fraud brokers are not legitimate or regulated brokers. They are typically salespeople who pretend to be brokers, but who are very well-spoken, with knowledge in shares and investing and who are confident in their cold-calling approach, providing a level of legitimacy to their front. Most often, these brokers will have experience in working in the stocks and shares market.
Boiler room fraud brokers are very persistent in their approach and will initially cold call investors, then call them again several times, trying to get them to invest. They may use tactics such as saying that a company will soon announce a major discovery and that, if invested in now, will increase the price of shares purchased. Often, immediate payment is demanded or the brokers will issue threats for noncompliance, intimidating the investor into purchasing the stocks or shares.
A broker using boiler room fraud tactics will give investors only positive information about the stocks at first, discouraging them from conducting any further research. Catchphrases such as “it’s a sure investment” or “this is a once in a lifetime opportunity” in an attempt to reel investors in. Usually, we find that brokers will target middle-aged investors who may have bought shares, with their details typically found on share-related registers or databases.
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Are boiler room scams illegal?
Boiler room scams are illegal in the UK, however, the brokers are usually based overseas where UK regulations don’t come into play. Boiler room fraud brokers operate out of many different countries, however the most popular we see are from Spain, Bermuda, Japan and America.
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Are pump and dump scams linked to boiler room fraud?
“Pump and dump” is where scammers use illegal market manipulation to artificially boost the price of their own shares in order to then go on and sell them at a profit. Pump and dump scams are just one of the many cryptocurrency scams due to the lack of market regulation. In a typical pump and dump scam, scammers will use cold-calling techniques or contact victims on social media and then try and persuade them to buy, usually with the promise of securing a high guaranteed profit. Once the price starts to increase, the scammers will then sell their shares, leaving investors now having almost worthless stocks.
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How can I avoid boiler room scams?
Boiler room scams take full advantage of the emotional aspect involved in order to get their money. Using high-pressure sales tactics, such as cold-calling, intimidation and using their limited knowledge to appear confident. By assuring investors that their investment will generate a return, this then causes doubt in the investor’s mind and makes them feel as though they are missing out if they don’t take the investment. If you ever receive a cold call with the promise of getting a high return on your investment and the above tactics are used, then it is highly likely that this is a form of boiler room fraud.
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What are the signs of boiler room fraud?
Boiler room fraud often has some telltale signs, including:
Being asked for money upfront, or asked to pay unexpected fees before shares can be released
You are put under pressure to agree to invest in the shares or stocks
The broker asks you to keep the details of the investment secret
You know the company is overseas (it is illegal for UK-based companies to cold call investors to sell them shares)