‘Boiler rooms’ are makeshift offices set up by a team of fraudsters offering non-existent, worthless or overpriced investments. They mostly sell shares but are also involved in FX (foreign exchange) trading, binary options and sports investment schemes.
Boiler room scammers will try to convince you to make a small initial payment and once they have your money, they will introduce many different reasons why you need to make a larger payment.
To make the scam more convincing, you may receive calls from ‘senior’ employees like the Vice President or CEO. This gives you the impression you are a valued client. In reality, it is other members of the boiler room.
These fraudsters appear professional. By the time you realise it’s a scam, they will have moved on and won’t answer your calls.
Look out for the signs
- You receive a ‘cold call’ or a stranger emails you. A common tactic is to ask you to take part in a survey and then call you back a few weeks later to say you are one of the lucky few they have chosen to help. They may contact you multiple times.
- They will promise you a great return– much better than other similar investments.
- They pressure you to invest quickly to take advantage of the offer.
