Share scams are often run from ‘boiler rooms’ where fraudsters cold-call investors offering them worthless, overpriced or even non-existent shares. While they promise high returns, those who invest usually end up losing their money.
Boiler rooms use increasingly sophisticated means to approach investors offering to buy or sell shares in a way that will give investors a huge return. But in the end, victims are often left out of pocket – sometimes losing all of their savings or even their family home.
The Financial Conduct Authority reports that victims of boiler rooms lose an average of £20,000 to these scams. With as much as £200m being lost in the UK each year. Even seasoned investors have been caught out, with the biggest individual loss recorded by the police being £6m.
REMEMBER: IF IT SOUNDS TOO GOOD TO BE TRUE, IT PROBABLY IS!
Find out more about how to protect yourself from boiler room fraud
Other useful links
You can report fraud by visiting the Action Fraud website.