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MetaAshes
High risk Share scams

Boiler room share scams: cold-called shares in companies that do not trade

Investors are cold-called by confident, well-rehearsed sales staff offering shares in a company said to be about to list or expand rapidly. The shares are often worthless, unsellable, or in a company that does not exist.

How the scam works

  1. 01

    A cold call, often from overseas, offers shares in a company described as about to list on a stock exchange or secure a major contract, with the caller citing inside knowledge.

  2. 02

    Professional-looking brochures, a share certificate and a dedicated dealing line are provided to build confidence, along with repeated follow-up calls.

  3. 03

    Further calls later offer to buy the shares back at a large profit, provided an additional fee, tax or deposit is paid first.

  4. 04

    No shares are ever genuinely held or tradeable, the company frequently does not exist in the form described, and the caller becomes unreachable once payment stops.

Warning signs

  • An unsolicited call offering shares in a company you have never researched yourself.
  • Claims of inside knowledge about an imminent stock market listing.
  • Pressure to decide before the opportunity closes.
  • A later request for a fee, tax or deposit before shares can be sold or a profit released.
  • A company with no verifiable trading history or an unauthorised firm arranging the deal.

How MetaAshes helps you check

A MetaAshes assessment examines the details a firm has given you against the official record. For this type of fraud, the most relevant checks include:

  • Nature of the product
  • Scope of regulatory permissions
  • Investor certification
  • FCA Warning List screening
  • Pressure and deadlines

View all 69 checks

If you have already sent money

  1. Contact your bank immediately and explain that you may have been defrauded.
  2. Report it to Report Fraud (formerly Action Fraud) on 0300 123 2040. In Scotland, call Police Scotland on 101.
  3. Report the firm to the Financial Conduct Authority.
  4. Be wary of anyone who later offers to recover your money for a fee.

This alert describes a general type of fraud for information only. It does not refer to any particular firm and is not financial or legal advice.