Boiler Room Scams

Over the last year, some Taylor Wimpey shareholders have recently been targeted by ‘specialist brokers’ using high pressure sales techniques which often turn out be worthless or high risk investments. This practice is commonly known as a ‘boiler room scam’.

The callers can be extremely persistent and persuasive and a recent survey by the Financial Services Authority (FSA) showed that even experienced investors had been duped in this way and investors had lost an average of £20,000. You should therefore be very wary of these practices.

Here are some useful tips to help you:

• If the offer sounds too good to be true, it probably is! Don’t be pressured into making a quick decision.
• Take care and treat any calls or mail with suspicion. Even professional looking websites can be easily created.
• Make sure you get the correct name of the person, organisation and their contact details.
• Protect yourself and check out any investment thoroughly. You can find out more information about boiler room scams on the FSA website. You can also check if the firm is authorised to do business by the FSA. If you deal with an unathorised firm, you would not be eligible to receive payment under the Financial Services Compensation Scheme.
• You should be aware that if you hold a share certificate, your name and address details are shown on the public register and this is one of the ways that boiler room operators can obtain your details. You can protect your privacy by considering moving your shares into a nominee account.

Return to Shareholder Information section.