Boiler room
An operation in which high-pressure sales people cold-call victims to sell worthless, non-existent, or wildly overpriced investments — often shares, bonds, or commodities.
Also known as: share fraud, cold call investment fraud
Last reviewed: 1 June 2026
A boiler room is a fraudulent sales operation characterised by high-pressure telephone tactics designed to manipulate victims into buying investments that are worthless, fabricated, or heavily marked up. The name originates from operations historically run from cheap basement offices.
Salespeople use scripts designed to exploit greed, fear of missing out, and social proof ('all our clients are making 30% returns'). They may initially send genuine-looking prospectuses, share certificates, or trade confirmations to build confidence, but the underlying investment either doesn't exist or is illiquid and unsellable.
Victims often receive follow-up calls from a 'recovery room' — the same or associated operation — offering to retrieve the lost money for an upfront fee, compounding the loss. Boiler room fraud targets people of all ages and education levels; the scripts are carefully designed to disarm scepticism.