Don’t become a victim of the boiler room scam (From Hampshire Chronicle)

Don’t become a victim of the boiler room scam

5:59pm Wednesday 17th March 2010 in

• Skip social links
• Print
• Email
• Comments(0)

DOZENS of Hampshire investors feature on a ‘master list’ being used by fraudsters to target and sell them worthless shares.

People in Winchester, Ringwood, Eastleigh and Southampton are among 1,000 across the UK to be warned they are being singled out by criminals who want to sell them worthless shares.

The con, known as a “boiler room” scam, costs the average victim more than £20,000 and sees around £200m swindled in the UK every year.

This list, the second share fraud master list obtained by the Financial Services Authority (FSA) and City of London Police (CoLP), contains the names and phone numbers of about 750 people, and the names and addresses of 250.

Share fraudsters usually contact people by telephone and use highpressure sales tactics to con investors into buying non-tradable, overpriced or even non-existent shares. Despite being unauthorised, overseas-based companies with bogus UK addresses and phone lines routed abroad they pose as legitimate firms.

Dealing with unauthorised firms means victims are left stranded without access to financial complaints and compensation schemes. Jonathan Phelan, of the FSA, said: “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.”

● 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.

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.