Companies are aware that some of their shareholders have received unsolicited phone calls or correspondence concerning investment matters which imply a connection to the company concerned. These are typically from overseas based ‘brokers’ who target UK shareholders offering to sell them what often turn out to be worthless or high risk shares in US or UK investments. Shareholders may also be advised that there is an imminent offer for the company, and the caller may offer to buy shares at significantly above the market price if an administration fee is paid. This is known as ‘boiler room fraud’.
They can be very persistent and extremely persuasive and the Financial Conduct Authority (FCA) has reported that the average amount lost by each investor is around £20,000. It is not just the novice investor that has been duped in this way; many of the victims had been successfully investing for several years. Shareholders are advised to be very wary of any unsolicited advice or offers to buy shares at a discount.
If you receive any unsolicited investment advice of this nature:
If you think you may have been a victim of boiler room fraud, you should report the matter to your local Police Station or to Action Fraud . Further information regarding Boiler Room Fraud is available on the Serious Fraud Office website.
An overview of the key activities, events and results in 2020, together with commentary on bp’s performance and our priorities as we move forward