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FSA issues share fraudster warning

The FSA and City of London Police have this week written to 6,500 UK homes to warn people that their details are on a master list being used by share fraudsters.

The master list contains the names of about 10,000 people, some with addresses and phone numbers.  

The list was discovered by the FSA and City of London Police who launched Operation WARN because of serious concerns that it was currently being circulated among fraudsters.

The letter, which is the first stage of Operation WARN, explains what people on the list can do to protect themselves from the fraud.  

The FSA and City of London Police have launched a secure consumer helpline so people who have received the letter can call in for further information.  

The FSA says boiler room 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.  

Boiler rooms are unauthorised, overseas-based companies with bogus UK addresses and phone lines routed abroad.

FSA head of the unauthorised business department Jonathan Phelan says: “By writing to people now, we can raise awareness of this type of fraud and help protect people from losing money to these criminals. Legitimate companies should not normally call you out of the blue offering to buy or sell shares. If you get such calls, just hang up and report it.”

City of London Police head of the economic crime directorate Steve Head says: “We are all potential victims for fraudsters and need to be aware of the heartless way they operate.

“Intelligence suggests that this list of people from across the UK is currently being shared amongst boiler rooms. I would urge those people who receive a letter from us in the next few days to contact the FSA and City of London Police on the Operation WARN helpline.”


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There are 4 comments at the moment, we would love to hear your opinion too.

  1. But what about the expenses fraudsters at the FSA? They seem to get away with doing whatever they like and, even when exposed, they aren’t required to repay a penny of what they’ve overclaimed. Funny old world, isn’t it? Certainly not a just one.

  2. I agreed with Julian! The FSA need to put their own house in order. What would happen to a member of the City of London Police if they were caught claiming twice their allowance as indeed senior members of the FSA have been doing?

  3. David Burren, Managing Director of Warwick Butchar 1st February 2010 at 5:47 pm

    I am pleased that the FSA has taken the initiative in trying to prevent people on this list from being taken advantage of. Fraudsters like these can appear intelligent, plausible and knowledgeable to vulnerable people – who may then be subjected to severe pressure. The long lists of firms who target UK residents from unregulated overseas firms illustrates that this is a real problem – often not highlighted until money has been lost. The FSA is often criticised – but this is a helpful initiative from them.

  4. It may seem a bit obvious but why dont the fraud squad identify the bank account where the money has been sent to and arrest the account holders immediately. Then send them to jail for fraud.? trying to alert every shareholder in Uk is typically soft stupid and too late.Get switched on FSA

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