It has been recently reported how Boiler Room Fraudsters are more and more frequently targeting students for recruitment. For this reason, it has become particularly important to be aware of what is a boiler room fraud.
‘Boiler room’ fraud is an organised criminal activity that is operated by phoney brokers who cold call victims and use high-pressure selling techniques to convince the victim into buying valueless, over priced or non-existent commodities. The organised criminal groups that operate this fraud are usually based overseas and selectively target victims in the UK.
The Serious Organised Crime Agency SOCA has identified that these criminals will look to recruit students and young people, to take part in this type of fraud. Fraudsters may look to recruit students by advertising boiler room fraud jobs at recruitment fairs, exhibitions and internet job pages that students use regularly.
Risks to your future associated with taking part in a Boiler Room fraud
Fraudsters will try to make these jobs appear attractive by promoting a potentially large salary, often based in Southern Europe or South East Asia and no need for previous experience in sales.
If you take a job in one of these boiler rooms you will be complicit in the substantial financial and psychological harm caused to its victims. Under the Fraud Act 2006, it is now no longer necessary to prove deception. All that is required is to prove that the fraudster was dishonest in their behaviour and they intended to make a gain for themselves or cause loss to another. The offence is punishable by up to ten years in prison and/or a fine.
Victims of this fraud often suffer severe financial losses and are sometimes forced to sell their homes. The emotional impact on these people (who are often elderly) can be devastating.
If you happen to come across a job advertisement that offers an unusually high salary with added incentives, you should think carefully before being lured into applying for the job and you can report very easily way fraud and cyber crime by using the online reporting tool of ActionFraud, the UK’s national fraud and cyber crime reporting centre.
Be particularly wary of job offers from companies who are based overseas as it will be extremely difficult for you to verify who they are. If in doubt, speak to a relative, friend or teaching professional about the job offer and check if a company is regulated by the Financial Services Authority by visiting their website at the Financial Conduct Authority FCA.
Read very carefully the entire article on Boiler Room Frauds on SAFERjobs website, the non-profit, joint industry & law enforcement organisation set up by the Metropolitan Police, aimed at tackling the rising issue of fake jobs.
