Often, boiler room fraud brokers are not legitimate or regulated brokers. They are typically salespeople who pretend to be brokers, but who are very well-spoken, with knowledge in shares and investing and who are confident in their cold-calling approach, providing a level of legitimacy to their front. Most often, these brokers will have experience in working in the stocks and shares market.

Boiler room fraud brokers are very persistent in their approach and will initially cold call investors, then call them again several times, trying to get them to invest. They may use tactics such as saying that a company will soon announce a major discovery and that, if invested in now, will increase the price of shares purchased. Often, immediate payment is demanded or the brokers will issue threats for noncompliance, intimidating the investor into purchasing the stocks or shares.

A broker using boiler room fraud tactics will give investors only positive information about the stocks at first, discouraging them from conducting any further research. Catchphrases such as “it’s a sure investment” or “this is a once in a lifetime opportunity” in an attempt to reel investors in. Usually, we find that brokers will target middle-aged investors who may have bought shares, with their details typically found on share-related registers or databases.

Boiler room scams are illegal in the UK, however, the brokers are usually based overseas where UK regulations don’t come into play. Boiler room fraud brokers operate out of many different countries, however the most popular we see are from Spain, Bermuda, Japan and America.

Question when you’re asked to pay upfront fees for goods or services you’ve ordered, as well as those you haven’t.
Be aware that winning a competition you haven’t entered is highly unlikely. It’s also highly unlikely you’ll be asked to pay a fee to claim prizes from legitimate competitions.
Be cautious of recruiters’ email addresses. Typically, they’ll use a business address instead of Gmail, Hotmail or Yahoo.
Be vigilant on social media, as scammers often post fake job opportunities and competitions on platforms such as LinkedIn, Facebook and Instagram.

Both scams involve pressuring individuals into investments with misleading claims. In pump and dump schemes, scammers artificially inflate a stock’s price before selling off their shares at a profit, leaving investors with worthless holdings.

boiler room fraud typically involves persistent cold-calling to sell fake or overvalued stocks. While both rely on deception and high-pressure tactics, boiler room scams focus on direct sales, whereas pump and dump scams manipulate market hype.

Loan fee fraud: You’re accepted for a loan, but before it’s “approved”, you’re asked to pay a fee for insurance, processing or an admin charge. Once paid, the loan never arrives, and the scammer disappears with your funds.
Job scams: You apply for a job and are told you’ve been successful. But before you can start, you’re asked to pay for background checks, training, or admin costs. Once paid, the job offer vanishes, and so does the scammer with your money.
Social media competition: You’re told you’ve won a prize in a competition, perhaps one you never even entered. But to claim it, you need to pay a small fee for delivery, verification or admin. After you pay, the prize never arrives because the competition was fake.
Rental property scams: You find a great rental property online. The “landlord” asks for a deposit to reserve it, often claiming there’s a lot of interest or that you can’t view it in person. After you send the money, the property turns out to be fake — or already rented to someone else.

Both scams involve pressuring individuals into investments with misleading claims. In pump and dump schemes, scammers artificially inflate a stock’s price before selling off their shares at a profit, leaving investors with worthless holdings.

Boiler room scams take full advantage of the emotional aspect involved in order to get their money. Using high-pressure sales tactics, such as cold-calling, intimidation and using their limited knowledge to appear confident. By assuring investors that their investment will generate a return, this then causes doubt in the investor’s mind and makes them feel as though they are missing out if they don’t take the investment. If you ever receive a cold call with the promise of getting a high return on your investment and the above tactics are used, then it is highly likely that this is a form of boiler room fraud.

Boiler room fraud often has some telltale signs, including:

Being asked for money upfront, or asked to pay unexpected fees before shares can be released
You are put under pressure to agree to invest in the shares or stocks
The broker asks you to keep the details of the investment secret
You know the company is overseas (it is illegal for UK-based companies to cold call investors to sell them shares)