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Boiler Room Schemes

May 25, 2000

Boiler room schemes are large-scale operations designed to lure in as many investors to an investment scam as possible, often using high-pressure sales tactics.   Boiler room scheme operators may cold call investors or solicit investors through emails, text messages, social media, and other means.  Boiler room scheme tactics may be used to perpetrate microcap fraud, binary options fraud, advance fee fraud, and other investment scams.

For more information, see the Boiler Room Schemes webpage on, the SEC’s website for individual investors.

The Office of Investor Education and Advocacy has provided this information as a service to investors.  It is neither a legal interpretation nor a statement of SEC policy.  If you have questions concerning the meaning or application of a particular law or rule, please consult with an attorney who specializes in securities law.

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