Boiler Room Scams

This section contains information on Boiler Rooms scams and how you can protect yourself by avoiding investment and pension scams.

Scam Tactics

A boiler room sells questionable shares via unsolicited telephone calls. It typically refers to a situation where a salesperson uses unfair, dishonest and highly pressurised sales tactics on members of the public; this may range from selling penny stocks to committing outright stock fraud.

Be wary of unsolicited calls offering you shares in a company you’ve never heard of.

Don’t be afraid to put the phone down and always check if the firm is authorised by the Financial Conduct Authority.

To do this visit the FCA Register or call the FCA Consumer Helpline on 0845 606 1234.

If you do buy the shares you may find they are worthless.  Also please remember that if the scam is based overseas (as they often are) you may not have the right to claim compensation.This flyer provides information about boiler room scams and gives you tips on how to protect yourself.

  • Check the FCA Register
    Click the above link to check if the firm contacting you is FCA authorised. Fraudulent firms will often ‘clone’ the details of authorised firms so if you find the firm call the number listed on the FCA register to make sure the person you spoke to works for them.

You can contact the FCA via email at consumer.queries@fca.org.uk or call their Consumer Helpline on 0845 606 1234.

Useful Links

FCA – Find out how to be a Scam Smart investorFCA – Avoid scams and unauthorised firmsFCA – Share fraud and boiler room scamsFCA – Unauthorised firms operating in the UK FCA – Regulation US sharesAction Fraud – Boiler room fraud The Money Advice Service – Staying safe against scamsFCA warns of increased risk of online investment fraudRead FCA article warning of increased risk of online investment fraud