The Boiler Room Scam

This is one of the best known scams around at the moment but people still fall for it.  It is named (I believe) because it is the kind of scam that could be , or was, run out of the cheapest room available, like a boiler room, as it just needed a phone line.

If you receive a call out of the blue offering you an investment which is too good to be true …. it will be !

The scam is basically selling shares. Shares that are very cheap and will grow massively. Shares that could earn you a fortune. Shares that are ……. worthless ! The lure is just too good for some more gullible people to pass up. I say gullible, I could have said trusting, or even greedy.  What you need to ask your self is:  If these shares are so good and will grow so quickly why are they being offered to you and why have they not all been bought already.

Once you make your first small investment, say £500, you will be on their list….and then the list of every scammer out there, and believe me they will come. Also you will be asked later to increase your portfolio of shares. Now you can look these shares up, usually the will be in USA, but they are not sellable even if they actually exist in the first place. Just because you are sent a share certificate doesn’t mean that you own anything. If anyone wants any proof of that then transfer £100 to me and I will send you a share certificate 🙂

You may make several purchases, each time you will be told how your shares are doing….expect big increases in value….and each time your investment will go up. These guys are clever, they can judge by your reactions how much money you can lay your hands on and will pitch it accordingly.

When they feel the money is drying up a bit they will tell you that they have a potential buyer for your portfolio but it just needs another, say £5,000, investment to make it viable. Then you will get back, say, 150% of what you put in over the last few months. NO. You won’t. You will just lose more money.

Now sit back and watch the rest of the calls come in including the Recovery Room calls.