Boiler Room Scams

28/07/2014

It has come to our attention that some Croma shareholders have recently been targeted by 'specialist brokers' using high pressure telephone selling techniques to induce people to make "investments" which are often worthless, and or fraudulent. They may also offer to buy shares at an inflated price in return for an up front payment. When high profits are promised, if you buy or sell shares it is probable that you will lose your money. This practice is commonly known as a 'boiler room scam'.

The callers can be extremely persistent and persuasive and a recent survey by the Financial Conduct Authority (FCA) showed that even experienced investors had been duped in this way and investors had lost an average of £20,000. You should therefore be very wary of these practices.

Here are some useful tips to help you:

 

  • If the offer sounds too good to be true, it probably is!
  • Don't be pressured into making a quick decision.
  • If the callers persist, hang up.
  • Take care and treat any calls or mail with suspicion. Even professional looking websites can be easily created.
  • Make sure you get the correct name of the person, organisation and their contact and address details.
  • You can find out more information about boiler room scams at www.fca.org.uk.
  • Check that they are properly authorised by the FCA before getting involved by visiting fca.org.uk and contacting the firm using the details on the register. If you deal with an unauthorised firm, you will not have access to the Financial Ombudsman Service or be eligible to receive payment under the Financial Services Compensation Scheme.
  • Call the FCA on 0800 111 6768 if the firm does not have contact details on the Register or you are told they are out of date.
  • Search the list of unauthorised firms to avoid at www.fca.gov.uk.
  • You should be aware that if you hold a share certificate, your name and address details are shown on the public register and this is one of the ways that boiler room operators can obtain your details. You can protect your privacy by considering moving your shares into a nominee account.

Report a scam

If you are approached by fraudsters, please tell the FCA using the share fraud reporting form at www.fca.gov.uk, where you can find out more about investment scams. You can also call the FCA Consumer Helpline on 0800 111 6768.