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FSA uncovers second share fraud master list this year

Published on 16 Mar 2010 under category: legal

Around 1,000 people whose names have appeared on a master list being used by fraudsters are to receive letters from the Financial Services Authority (FSA).

The watchdog has uncovered its second share fraud master list so far this year and is contacting those affected to warn them that they may be targeted.

Criminals use stolen personal information to target investors and sell them non-tradable, over-priced or non-existent shares.

They are often based overseas and use bogus UKL addresses and phone lines to con their victims.

Jonathan Phelan, head of the unauthorised business department at the FSA, said the regulator's sources indicate that this particular list is still in use by fraudsters.

"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," he remarked.

As well as sending out letters, the FSA will also be calling investors to offer guidance on how they can protect themselves.

However, Mr Phelan insisted that the watchdog will not ask for any personal details, so calls requesting such information should be treated as potential fraud crimes.

Last month, the FSA returned around £270,000 to share scam victims.