Boiler Room Legal Meaning and Definition

Here is a simplified definition of the legal term Boiler Room.

Boiler Room (noun)

A "Boiler Room" in the legal context refers to a scam operation, often carried out in a packed space (like a boiler room), where fraudsters use telephone calls to deceive people. The callers typically pretend to represent reputable companies or organizations to sell products or obtain private information. Use of high-pressure sales tactics and manipulative techniques are typical in these scenarios. This fraudulent practice can apply to various fields, such as finance, politics, or marketing.