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Corporate fraud scam warning from FSA

Published on 24 Feb 2010 under category: legal

Firms authorised by the financial services watchdog have found that their details and registration numbers are being used in share-selling overseas scams.

The Financial Services Authority (FSA) reported that it had seen a “dramatic increase” in such scams, where firm's websites have been cloned using only slightly altered  phone numbers and false email addresses.

Anyone who buys shares in these companies is unlikely to be compensated, as the scammers will not be covered by the Financial Services Compensation Scheme.

Many of these firms use cold-calling and unsolicited emails, so the FSA advises those on the receiving end to double-check the firm's status on its company register and then call the company back on the switchboard number provided by the FSA to check its authenticity.

Jonathan Phelan, head of the FSA's unauthorised business department, said: "It is encouraging that awareness of share scams is now so high that conmen are having to come up with new tactics as it shows our strategy is working.

"Sadly, however, this also means there is a renewed risk to investors and a new type of scam for us to tackle."

If you require advice on Corporate Fraud please call us on +44 (0)20 7831 0101 and ask for Dan Hyde.