Boiler Room Scams
Beware of phone calls from someone you don’t know about an investment opportunity.
How it works
Scam artists in a boiler room operation cold call people and use high-pressure sales tactics to sell shares in a company. The company may be fake or real. Either way, the scammer hypes the stock up to over inflate the price and potential earning power of the investment. The company they want you to invest in is usually in a sector that’s in the news. By the time you realize you’ve been had, the scam artist will have closed up shop and moved on to another scam. On top of that, the scammers are usually not registered to sell securities in New Brunswick.
How to protect yourself
- Check that the individual and firm selling the investment are registered in New Brunswick. Use the National Registration Search Tool.
- Get as much written information as possible about the investment. It should include detail about the risks and costs of the investment, and what you have to do to get your money out.
- If you’re unsure, get a financial professional such as an accountant, lawyer or a financial advisor, to evaluate the investment.
How to report it
If you suspect you’re a victim of a boiler room scam, or attempted boiler room scam, complete the FCNB Submit a Complaint form.
FCNB is responsible for the administration, education and enforcement of provincial legislation that regulates securities, insurance, pensions, credit unions and certain consumer services. If your complaint relates to an area outside of FCNB’s regulated areas, we may refer you to the appropriate reporting agency or organization.