In the past scam investment firms have made a fortune by dwindling savers and small shareholders in America out of their hard earned cash with bogus investment opportunities. However, officials in the United States have really cracked down on these scams over recent years, and this has resulted in the focus of boiler room operators being targeted elsewhere. Britain is one of the latest places to become one of the main focuses of these con-artists.

Savers and small shareholders in the UK are being warned to be extremely cautious about buying shares in an investment that sounds a little too good to be true. A number of people have fallen for boiler room scams, where they have been persuaded to purchase thousands of pounds worth of shares known as Regulation S shares. However, investors have then realised to their horror that the shares are practically unsaleable, leaving them with a gaping hole in their bank accounts and very little to show for it.

One doctor explained how he was contacted by a firm, and a friendly but persuasive salesman called him to tell him about an exciting investment opportunity. The doctor invested a small amount and when share prices rose he continued to invest to the tune of £60,000. It was only after he had invested tens of thousands of pounds that he realised that these Regulation S shares were virtually impossible to sell on. To make matters worse the share prices then plummeted and his £60,000 is now worth just £5000.

Authorities in Britain are now warning that small shareholders and savers should be aware that they are being targeted by these boiler room operators, and should be extremely cautious when they receive calls from unknown companies telling them about a winning investment opportunity. Investors should remember that Regulation S shares are practically impossible to sell on, and that swindlers are extorting huge sums of money from investors who allow themselves to be talked into buying these shares.

The Financial Services Authority said that savers and shareholders need to recognise boiler room scams and hang up the phone when they find themselves engaged in talks with a persuasive salesperson that is offering them what appears to be a dream investment. The FSA said that this is the only way that Britain can start to reduce the effects of this scam. In the meantime, the City of London Police has set up a specialist operation to try and tackle boiler room fraud.