Boiler Room

Boiler rooms, and boiler room scams, are a method of defrauding investors of money.

So-called "boiler rooms" target investors using hard-sell tactics and promises of riches to persuade them to buy often over-priced or worthless shares.

The company, usually based overseas, then vanishes with the money.

Boiler rooms pursue potential 'investors' relentlessly. In many cases they do not make a 'sale' in the first call, and can keep calling back for more than a month.

They often claim to be from popular investment locations such as the US, Switzerland, Dubai or Spain and will offer plausible reasons why shares are set to rocket.

Boiler rooms tend to target older men who are experienced investors.

Anyone who is suspicious should call the Financial Services Authority (FSA) on 0845 606 1234.

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