Second boiler room warning
Published: 15th March 2010
'Operation Warn' continues as FSA and Police contact a thousand
share fraud targets after seizing another 'master list'
City of London Police and the Financial Services Authority (FSA)
have contacted 1,000 people across the UK to warn them that their
personal details are on a 'master list' being used by fraudsters to
target and sell them worthless shares.
This list contains the names and phone numbers of about 750
people, and the names and addresses of 250.
It is the second share fraud master list obtained in 2010 as part
of Operation WARN, after 10,000 people were contacted in
February.
The letter sent out this month explains what people on the list
can do to protect themselves from the fraud, while phone calls from
the FSA (to those on the list without addresses) will offer
guidance on how people can protect themselves, or what they should
do if they have already invested.
The FSA will not ask for any personal details from the
people on these lists, so any calls requesting personal information
should be treated with caution.
Anybody who has received a letter from the FSA and CoLP
concerning Operation WARN, or is concerned about being a victim of
share fraud can call 0300 500 5000 for further information.
Share fraudsters usually contact people by telephone and use
high pressure sales tactics to con investors into buying
non-tradable, overpriced or even non-existent shares. These share
frauds, commonly know as 'boiler rooms', are unauthorised,
overseas-based companies with bogus UK addresses and phone lines
routed abroad.
Dealing with an unauthorised firm means you do not have access to
the financial complaints and compensation schemes.
Jonathan Phelan, head of the unauthorised business department at
the FSA, said:
"This is the second master list we have obtained in as many
months. Our sources indicate that the list is a new one and still
in use by the fraudsters, so by contacting people on it we hope to
cut these boiler rooms off at the pass.
"Raising awareness of this type of fraud through publicity
is one of the best tools we have to prevent people getting involved
and losing their money. Legitimate share dealers and brokers will
not normally cold call people offering to buy or sell shares, so if
you get one of these calls - just hang up and report it.
"The key message remains: if it sounds too good to be true,
it almost certainly is."
Det Chief Supt Steve Head, head of the City of London Police's
Economic Crime Directorate said:
"Discovering e second list is testament to both the hard
work of the officers involved in these investigations and to the
incredible support we continue to receive from the general
public.
"Preventing people from becoming victims of these insidious
criminal networks is an enormously important aspect of our work and
I would like to take this opportunity to thank everyone who has
contacted us to help identify them. I would also urge anyone
receiving cold calls of this nature not to part with any money, and
instead to contact the police or the FSA."
Shareholders and other consumers can avoid becoming victims of
share fraud by:
- Hanging up the telephone if they get an 'out of the blue' call
offering them shares;
- Checking that anyone offering to sell them shares is registered
with the FSA;
- Calling the company back using the details on the FSA register
to verify their identity; and
- Reporting any company that cold calls them to sell shares, to
the FSA or the Police.
People can find further information on protecting themselves
from fraud on the FSA consumer website moneymadeclear.fsa.gov.uk and The City of
London Police Operation
Archway section.