MEP working to fight 'Boiler Room' scams

12.42.27pm GMT Tue 7th Nov 2006

Lib Dem West Midlands MEP Liz Lynne is warning residents to be aware of a new scam that involves overseas companies cold calling people and pressuring them into buying worthless shares.

Liz has recently ensured that one company, Hilton Advisory, has been added to the Financial Services Authority's internet list of unauthorised overseas firms after a constituent wrote to her about the way they tried to con her mother.

The German equivalent of the FSA, the Bundesanstalt fur Finanzdienstleistungsaufsicht, has also initiated an investigation into Hilton Advisory as a result of Liz's efforts.

Euro-MP Liz said: "The people who run so-called 'Boiler Room' scams are usually very smooth and professional sounding but do not be fooled - they are can be quite ruthless in their efforts to cheat unsuspecting people.

"If you are approached out of the blue, be very suspicious - think about why they are calling you and how they could have got your details and make sure you find out who you are really dealing with.

"If you do business with a firm who is not authorised you will not get the protection of the UK's laws and compensation schemes and could lose a lot of money."

Editor's Notes

For more information on Boiler Room scams, please go to www.fsa.gov.uk/consumer.