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boiler room noun. A room set up as a telemarketing operation, but used to run scams, such as selling fake jewelry or stocks.

Example Citation:
Here's how it works: A marketing service sends junk mail, including information on a Canadian lottery, to Americans, and develops a contact list from those who respond, said Hillsborough sheriff's Detective Skip Pask. The marketers then sell the contact list to a criminal group in Canada that sets up a boiler room, or location stocked with dozens of phones and employees who do nothing but make calls to the United States.
—Amy Herdy, "Sweepstakes scam dupes elderly," St. Petersburg Times, April 4, 1998

Earliest Citation:
A nationwide survey by the CFTC staff uncovered what Bagley described as "disturbing" evidence that diamonds as well as copper, foreign currencies and platinum are being sold fraudulently with fast sales pitches across the country.

Indeed, many of the same boiler room sales tactics that characterized the sale of London commodity options — and led to a ban on such trading that started yesterday — are being used to sell diamonds as investments, Bagley said.
—William H. Jones, "Agency Asks Action on Potential Diamond Swindles," The Washington Post, June 2, 1978

Related Words:
419 scam
cramming
curbsider
dot con artist
high closing
identity theft
paint the tape
pump and dump
scam baiting
scam card
skimming
tolerance room
Web cramming

Subject Categories:
Technology - Telephones
The World - Crime

Posted on November 23, 1998 at 8:16 PM


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