City of London Police has warned boiler room scams are on the rise after a raid on a suspected boiler room operation led to five arrests.
It says the suspects are believed to have been targeting vulnerable consumers from a number of London offices, and are thought to have been selling overvalued commodities products.
The five men were arrested on suspicion of conspiracy to commit fraud by false representation and money laundering. They have been held for questioning.
Action Fraud, a consumer hotline run by the City of London Police and the National Fraud Intelligence Bureau, says it has evidence suggesting investors have lost tens of thousands from the suspected scam.
City of London Police detective chief inspector Dave Manley says: 'In recent months we are finding evidence of boiler rooms creeping back into the City. This could be partly a result of the success we have had in shutting down these types of operations overseas, and partly down to the fact that having a fancy office in the Square Mile makes it easier for the gangs to recruit.
'Whatever the reason, the City of London Police will not tolerate their existence and is committed to acting quickly to limit the harm they can cause to investors, especially the elderly and vulnerable, living across the UK.'
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