Share Fraud UK: Spot a 'Boiler Room' Cold Call
A genuine investment firm doesn't need to cold-call you with a free gift to earn your trust.
What a boiler room share scam looks like
This scam is an unsolicited call offering shares or bonds, often in a company said to be about to do something exciting, sometimes with a 'free' research report or gift thrown in. An example of the style: We're offering a limited allocation of shares before they list — I can also send you our free research report on the company. The FCA describes boiler rooms as fraudsters cold-calling investors with worthless, overpriced, or even non-existent shares or bonds.
Why boiler room calls are convincing
Callers sometimes already have your name and shareholding history, because the FCA says fraudsters get numbers from publicly available shareholder lists. That can make the call feel personally targeted rather than random. A 'free' research report, gift, or discount can also build a sense of legitimacy before the actual pitch.
Signs a share or bond offer is a boiler room scam
- You're cold-called about buying shares or bonds, rather than approaching a firm yourself.
- You're pressured to decide quickly or 'miss out on the deal'.
- You're offered a free research report, gift, or discount on dealing charges to build trust.
- You can't independently verify the firm on the FCA's own records.
How the scam works step by step
First, an unsolicited call offers shares or bonds, often using your name and some knowledge of your existing shareholdings. Second, a free report or gift is offered to build credibility. Third, pressure is applied to invest quickly before missing out. Fourth, the shares or bonds are worthless, hugely overpriced, or don't exist, and the money is gone.
How to check a share or bond offer safely
Use the FCA Firm Checker and Financial Services Register to confirm the firm is genuinely authorised before considering anything.
- Check the FCA Warning List of known unauthorised firms.
- Treat any unsolicited investment call as a reason for caution, regardless of how convincing or well-informed the caller seems.
If you've already invested
Stop sending any further money. Be alert to a follow-up 'recovery' approach offering, for a fee, to get your money back. The FCA warns that follow-up recovery approaches can be a second scam targeting the same victims.
How to report a boiler room share scam (UK)
Report a suspected unauthorised firm to the FCA on 0800 111 6768. If you've lost money, also report it to Report Fraud at reportfraud.police.uk or 0300 123 2040 if you're in England, Wales, or Northern Ireland. In Scotland, report to Police Scotland on 101.
Frequently asked questions
What is a 'boiler room' share scam?
It's a fraudulent operation that cold-calls investors offering worthless, overpriced, or non-existent shares or bonds, often using high-pressure sales tactics.
How do these callers already know I own shares?
The FCA says fraudsters commonly get phone numbers and shareholding details from publicly available shareholder lists. It doesn't mean the call is genuine.
I've already sent money to a suspected boiler room scam. What next?
Stop sending any further money, watch for a follow-up 'recovery' scam offering to get your money back for a fee, and report it.
Can I get my money back from a share fraud scam?
There's no guarantee, but contact your bank as soon as possible to ask about your options, and report it to the FCA and Report Fraud.
How do I report a suspected boiler room scam?
Report it to the FCA on 0800 111 6768, and to Report Fraud at reportfraud.police.uk or 0300 123 2040 (Police Scotland on 101 in Scotland) if you've lost money.