Boiler room fraud

Boiler room fraud is a type of investment fraud. For example, criminals persuade you to give money to a project that sounds successful. It often starts with small amounts. They subsequently ask for larger and larger amounts. It turns out the project doesn’t actually exist and you lose your money.

What is boiler room fraud?

With boiler room fraud, criminals respond to the appeal of making money quickly and easily. They take the time to persuade you and use all kinds of psychological tricks in the process. They have often gathered a lot of information about you. Via social media, leaked information or phishing, where you have inadvertently entered personal information. You are told that you have been specially selected for a proposal to invest in something that is sure to earn you a lot of money and fast.

What should you pay attention to?

Criminals may get in touch in any number of ways. They often use advertisements on social media after you have left data behind. Someone will then call you from a call center. They not only do so in Dutch, but also in English. A lot of boiler room fraud is conducted on an international scale. What if you get a call and something doesn’t feel right? Hang up immediately. Did someone contact you on social media? Do not respond and delete the message.

What can you do?

If you want to give money to a project that sounds like it could be successful, always be cautious. The following checklist can help prevent investment fraud.

    Always conduct your own research into the party to which you plan to transfer money. Be sure you know in advance which project your money will go to. Is there an adviser who helps with the investment? Be wary if this person has approached you through an (online) advertisement. In online advertising, criminals often use the face or name of famous Dutch people. Never transfer money for a course or advice, e.g. €250 for start-up costs. Never transfer money on the instructions of someone else. Be wary if you have to transfer money to a foreign account. Make clear agreements about when you’ll get the money you invested back and draw up proper agreements to confirm it. Does the party to which you are transferring money claim it has a license from the Dutch Authority for the Financial Markets (AFM)? Always check whether the party appears on the AFM’s warning list or on the IOSCO’s international list.

Check and report fraud

Are you the victim of boiler room fraud? Please report this.