Boiler room scams
In recent years, many companies have become aware that their shareholders have received unsolicited phone calls or correspondence concerning investment matters. These are typically from overseas based ‘brokers’ who target UK shareholders, offering to sell them what often turn out to be worthless or high risk shares in US or UK investments. These operations are commonly known as ‘boiler rooms’. These ‘brokers’ can be very persistent and extremely persuasive.
It is not just the novice investor that has been duped in this way; many of the victims had been successfully investing for several years. Shareholders are advised to be very wary of any unsolicited advice, offers to buy shares at a discount or offers of free company reports. Advice on how to avoid share fraud and how to report a scam to the FCA is set out in a document prepared by the FCA in conjunction with the ICSA Registrars Group.
If you deal with an unauthorised firm, you will not be eligible to receive payment under the Financial Ombudsman Service or the Financial Services Compensation Scheme.
Details of any share dealing facilities that the company endorses will be included in company mailings.