WMA reissues factsheet due to boiler room concerns

The Wealth Management Association has warned over the increasing risks of boiler room scams following the latest fraud figures.

Financial Fraud Action UK today published figures showing UK consumers have lost at least £23.9m to telephone scammers.

In response, the WMA has reissued its factsheet to consumers on how to deal with the threat of fraudsters.

The factsheet includes information on how to recognise a boiler room, how consumers can protect themselves and also how to report boiler rooms to the FCA.

WMA chief executive Liz Field says: “While more Britons may now be managing their finances online, we must all remain vigilant to threats posed by cold callers and traditional ‘boiler room’ scams.

“Their high-pressure sales techniques entice investors to engage in financial or share deals which appear, and turn out to be, too good to be true. As boiler rooms are a criminal activity, they are not authorised by the FCA and victims will not have the right to complain or claim compensation. In most cases unfortunately, the money is hardly ever recovered.”