boiler room

Definition

An unflattering term used to describe a fraud scheme in which salespeople are hired to call unsuspecting individuals and push investment opportunities. These high-pressure calls are often used to pitch worthless or nonexistent securities. These operations typically consist only of a large number of telephones in a single room, giving rise to their name.

Use boiler room in a sentence

You need to make sure that you are never accused of being in the boiler room or your reputation may get damaged.

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The boiler room nature of the cold calling strategy was in poor taste as the individuals on the receiving in were being robbed.

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I did not like the boiler room tactics the business was using and felt that they needed to change their business structure to prevent fraudulent activity.

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