People who fall victim to boiler room scams by purchasing virtually worthless shares lose an average of £20,000, according to the Financial Services Authority (FSA).
The warning comes after the FSA surveyed callers to its consumer contact centre who had reported being targeted by boiler rooms – overseas operations using high-pressure selling techniques to persuade UK investors to buy shares. More than half (59%) of the 100 respondents to the survey had fallen victim to the scam by purchasing worthless shares and, of the victims, 13% had been conned by more than one boiler room. While the average loss was £20,000, three victims each reported losses of over £100,000. The survey found boiler rooms tend to prey on older people, with 38% of the victims...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes