Tens of thousands of share owners at risk of fraud

The Financial Services Authority has revealed that tens of thousands of savers are actually the target of an international share fraud.  The FSA stated that it found a ‘target list’ that contained the details of over 38,000 UK investors.

The list of investor details is being passed around to bogus share salesmen located overseas and in Britain.

These dealers, often referred to as ‘boiler rooms’ due to the high pressure ways that they make their sales, offer shares at bargain prices to people that they cold-call.  However, once investigated, the victims find out that the shares they bought are hard to sell, or worthless, costing them thousands of pounds.

The FSA is writing to everyone that was targeted to warn them that the boiler rooms will likely try to scam them in the future.

Spokesman Jonathon Phelan for the FSA said that this is the largest list they have recovered but by quickly taking action and talking to every person on the list they are hoping they can stop future fraud efforts.

Phelan continued to say that the fraudsters are very professional so it’s easy to get taken in by the great claims and actually investing in the shares they advise.  He added that potential victims are found from company lists of shareholders.

In additional, Phelan stated that in general selling shares via a cold-call is not allowed, so if you receive a phone call of this type you should be sceptical from the start.