FSA: 35% of boiler room targets over 65

28 April 2009

Fraudsters who use high-pressure boiler room tactics to illegally sell worthless stocks to investors are targeting people aged 65 and over, according to new research from the UK's Financial Services Authority (FSA).

The regulator's poll found that 35 per cent of those targeted by such share frauds are in the over-65 age group.

The findings come as the FSA prepares to hold a conference in partnership with Help the Aged and Age Concern looking at developments in financial crime. The event will bring together financial services representatives, government officials and law enforcement agencies to examine the effect the current economic climate is having on financial crime and the "increasingly sophisticated" techniques being employed by fraudsters.

According to the Guardian, British investors are believed to be conned out of around £500 million ($728 million) every year by boiler room scams.

The FSA's poll also found that 23 per cent of over-65s are worried they could fall victim to fraud in 2009, yet approximately 49 per cent said there is not enough information available on how to protect themselves from potential scams.

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