Consumers warned of share scam - Money - News - Moneyfacts


Consumers warned of share scam

Consumers warned of share scam

Category: Money

Updated: 24/02/2010
First Published: 24/02/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Consumers have been warned that there has been a dramatic upturn in overseas fraudsters imitating firms and individuals registered by the Financial Services Authority (FSA).

The body has said that it has seen a significant rise in this type of fraud, whereby conmen sell shares using the names, registration and addresses of legitimate businesses.

Recently, the FSA has seen instances where an authorised firm's website has been cloned, barring a few minor details, such as fake email addresses.

Customers receiving unsolicited calls or emails from a firm they are not a customer of have been advised to: ask for contact details of the person calling; check the firm's or individual's status on the FSA register; and call the firm back on the switchboard number provided by the FSA register to make sure the call is legitimate.

Anybody who believes they have been targeted has been told to call the FSA on 0300 500 5000 or report the incident on the it's website

"Our message remains the same: never deal with unauthorised firms. If somebody calls you out of the blue to promote shares, then you should be very wary of them even if they claim to be authorised by the FSA," commented Jonathan Phelan, head of the FSA's unauthorised business department.

Consumers have also been warned that firms not registered by the FSA are not covered by the Financial Services Compensation Scheme, meaning people will lose their money if the business goes bust or disappears.

Last week, the Financial Ombudsman Service warned consumers to be aware of fraudulent calls asking for banking details.

Find the best savings account for you - compare our best sellers savings accounts

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

It’s good to talk (about money issues)

They say that it’s good to talk, yet it seems there are some subjects that people are just too embarrassed to discuss. Money is definitely one of them, yet failing to talk could make those issues far more stressful than they need to be.

Give your finances a pre-Christmas health check

The festive season is rapidly approaching, and with it comes thoughts of how you’re going to fund the whole thing. It’s important to be on the ball, and giving your finances a pre-Christmas health check could be one of the best things you do.

Parents to spend £552 on children this half term

Autumn has truly arrived – and half term with it. This looks to be bad news for parents’ wallets, as research from American Express shows they will be spending an average of £276 per child this holiday break.