Elderly Targeted By Boiler Room Gangs 

Times Online

April 27, 2009

United Kingdom

Con artists flogging often worthless shares are infiltrating book clubs, holiday clubs and even knitting club.

Pensioners are more likely to be targeted by fraudsters, the City watchdog warned today, as it released alarming statistics showing that con artists have contacted as many as 12 million adults. 

The Financial Services Authority (FSA) also warned that financial crime is likely to jump sharply in the economic downturn, with fraudsters using increasingly sophisticated techniques to perpetrate their crimes.
 
Boiler rooms, which use high-pressure tactics to flog potentially worthless shares, are starting to infiltrate book clubs, holiday clubs and even knitting clubs with the aim of using members to persuade other people in the group to sign up. 

More than a third of people targeted by fraudsters in the last year were over 65 and 41 per cent of those who did not know fraudsters could steal their identity using their passports, driving licences and mortgages were pensioners. 

The figures were released to coincide with the launch of an FSA scheme to protect older people from financial scams in partnership with charity Age Concern and Help the Aged. 

Speaking at a conference on financial crime today, Chris Pond, FSA director of financial capability, said: “Fraudsters, like all criminals, tend to prey on the most vulnerable people and our research shows this is definitely the case with criminals who commit financial crimes. This is a clarion call to everyone that we cannot sit back and let honest people lose their hard earned money to unscrupulous individuals.” 

Older people are the most likely to be targeted because they often live alone and are therefore more vulnerable to the boiler rooms’ tactics. Callers may ring victims several times to build up a relationship with their victims before moving in for the hard sell. 

Boiler rooms are often based outside Britain, so you have no rights to complain and no access to UK compensation schemes. Whereas it used to be easy to spot a boiler room by its overseas telephone number, many now use UK numbers to fool their victims. 

They may also employ gap-year students who speak good English, and claim to use small UK-based law or accountancy firms to appear more legitimate. 
From today, the City regulator has a new page on its consumer website, to help anyone worried about falling victim to fraud. It will have useful tips and factsheets including a leaflet produced with the City of London Police’s anti boiler room unit, called Operation Archway. 

The FSA recommends that you always check a firm is on its register before signing up. Fraudsters may use the names of legitimate companies, however, so always double check contact details. 

The FSA also has a list of unauthorised firms that it knows operate in this way here. 

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