Share sale, boiler room, hedge fund or bond fraud involves bogus stockbrokers, usually based overseas, cold calling people to pressure them into buying shares that promise high returns. In reality, the shares are either worthless or non-existent.
You are usually contacted out of the blue by a professional-sounding stockbroker who offers you investment opportunities that seem too good to be true. You are also promised free research reports, special discounts and ‘secret’ stock tips.
In reality, the fraudsters are cold calling as many people as possible, persuading them to invest in shares that are either non-existent, or so worthless they are impossible to sell.
The fraudsters may provide false share certificates and other documents to make the investments seem credible.
Once the fraudsters have squeezed whatever money they can from investors, they quickly disappear.
Share sale frauds tend to start with a telephone call out of the blue. Using hard-sell techniques, the fraudsters try to pressure you into making rushed decisions, giving you no time to consider the nature of the investment.
As with many fraudulent schemes, you’re encouraged to keep your investment secret to ensure you receive maximum returns. This allows the fraudsters to hide the real nature of their scheme.
Fraudsters aim to make their business seem legitimate, so they will often use technical jargon, impressive job titles and mock websites to appear credible.
Are you a victim of share sale fraud?
What should you do if you’re a victim of share sale fraud?
Protect yourself against share sale fraud
If fraud has been committed, report it to Action Fraud.
Investing in funds
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