What is a boiler room scam?

A boiler room scam uses pressured sales contact to sell worthless, overpriced or nonexistent shares or bonds. The FCA says these approaches often start with unexpected calls. 1

Criminals may use convincing adverts and copied firm details. An offer to buy your existing shares can also hide a fee-taking scam. 1

By Secordit. Last checked: 7 November 2026.

Go to the steps · All glossary terms

How does it work?

  1. A salesperson approaches you with a share or bond deal. 1
  2. You are pressured to commit before independent checks. 1
  3. The investment is worthless, overpriced or does not exist. 1

What the FCA describes

The FCA describes callers offering above-market prices for existing shares. The caller then demands an upfront security payment and disappears. 1

What are the warning signs?

  • An unexpected caller presses you to make an investment decision. 1
  • A supposed share buyer requires an upfront security payment. 1
  • The contact details do not match the FCA Firm Checker. 1

What to do now

  1. Stop the sales conversation and check the firm independently. 1
  2. Report a suspected share or bond scam to the FCA. 1

UK reporting and support

  • If you paid a suspected scam, contact your bank using the number on your card. 23
  • Report fraud in England, Wales or Northern Ireland to Report Fraud. In Scotland, call Police Scotland on 101. 34
  • If someone is in danger, call 999. 4
  • Forward suspicious emails to [email protected]. Forward suspicious texts to 7726. 5

How can you protect yourself?

  • Check the firm’s permissions and contact details through the FCA Firm Checker. 1
  • Seek independent financial guidance or advice before investing. 1

Frequently asked questions

Can a boiler room use email rather than calls?

Yes. The FCA describes approaches by email, post and seminars as well as telephone. 1

Can existing shareholders be targeted?

Yes. The FCA describes offers to buy existing shares followed by demands for upfront payments. 1

Does an early payout prove an investment is genuine?

Do not rely on payments alone. Other investment scams can use initial payments to build trust. 16

Matching kit

After a Scam: What to Do First · £7 · Digital download.

A printable UK checklist for money, account and reporting steps. It is general information, not a recovery service.

General information, not legal, financial or personalised security advice. Secordit is not a police or bank reporting service.

News Pulse

Account security, explained by email.

Read about News Pulse

Sources

  1. FCA, Share, bond and boiler room scams. Accessed 7 November 2026 (Europe/London).
  2. Report Fraud, Ticket fraud. Accessed 7 November 2026 (Europe/London).
  3. Report Fraud, Police impersonation alert and reporting routes. Accessed 7 November 2026 (Europe/London).
  4. Police Scotland, How to report a crime. Accessed 7 November 2026 (Europe/London).
  5. GOV.UK, Avoid and report internet scams and phishing. Accessed 7 November 2026 (Europe/London).
  6. FCA, Forex trading scams. Accessed 7 November 2026 (Europe/London).