Warning to shareholders regarding boiler room scams
Please be aware that there have been reports from Persimmon shareholders that they have received unsolicited telephone calls from fraudulent companies, offering to buy shares at inflated prices. We suspect the calls are part of a scam and Persimmon would like to remind its shareholders to remain vigilant at all times.
Share scams are often run from 'boiler rooms' where fraudsters cold-call investors offering them worthless, overpriced or even non-existent shares, or offer to buy their shares at a much higher price than the market value. The 'boiler room' scam has developed over recent years and there has been an increase in reports of overseas fraudsters contacting shareholders to sell and buy shares using the names, registration numbers and addresses of authorised firms and individuals in an attempt to convince consumers of their legitimacy. While they promise high returns, those who invest usually end up losing their money.
How to protect yourself
Information on how to protect yourself from investment scams, and how to check you’re dealing with an authorised firm is available on the FCA ScamSmart website.
The FCA highlights that scams are increasingly sophisticated. Fraudsters can be articulate and financially knowledgeable, with credible websites, testimonials and materials that are hard to distinguish from the real thing. But if it sounds too good to be true, it probably is.
Fraudsters will often:
contact you out of the blue
apply pressure to invest quickly
downplay the risks to your money
promise tempting returns that sound too good to be true
say that they’re only making the offer available to you or even ask you to not tell anyone else about it
How to avoid investment scams:
Reject unexpected offers:
Scammers usually cold call, but contact can also come by email, post, word of mouth or at a seminar. If you’ve been offered an investment out of the blue, chances are it’s a high risk investment or a scam.
Check the FCA Warning List:
Use the FCA Warning List to check the risks of a potential investment – you can also search to see if the firm is known to be operating without our authorisation.
Get impartial advice:
Get impartial advice before investing – don’t use an adviser from the firm that contacted you.
If you are suspicious, report it
You can report the firm or scam to the FCA by contacting their Consumer Helpline on 0800 111 6768 or using their online reporting form on the FCA ScamSmart website. If you’ve lost money in a scam, contact Action Fraud on 0300 123 2040 or www.actionfraud.police.uk.