Boiler Room Scams
Please be aware that there have been reports from shareholders who have received unsolicited telephone calls from fraudulent companies, offering to buy shares often at inflated prices. We would like to remind our shareholders to remain vigilant at all times. Please see the warning below for further information on what you should do if you are contacted in this manner.
Share scams are often run from "boiler rooms" where fraudsters cold-call investors offering them worthless, overpriced or even non-existent shares, or offer to buy their shares in a company at a much higher price than the 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 consumers of their legitimacy. While they promise high returns, those who invest usually end up losing their money.
How to protect yourself
- Remain vigilant - be very wary of any unsolicited advice, or offers to buy shares at a discount.
- If you receive any unsolicited investment advice of this nature, make sure you get the correct name of the person and organisation and make a record of any other information they give you e.g. telephone number, address etc.
- Contact the Financial Conduct Authority (“FCA”). Check the FCA register to ensure that anyone who is offering to sell your shares is properly authorised. For more information, please view the FCA’s website on how to protect yourself against scams
- Use the details on the FCA Register to contact the firm.
- Call the FCA Consumer Helpline on 0800 111 6768 if there are no contact details on the Register or if you are told they are out of date.
- Search the FCA's list of unauthorised firms and individuals to avoid doing business with.
- If calls persist, hang up.
- You should also report suspected boiler room fraud to the police.
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.