The FSA and City of London Police have written to 6,500 addresses in Britain to warn people that their details are on a “master list” of about 10,000 names which is being used by share fraudsters.

The letter, which is the first stage of FSA/police Operation WARN, explains what people on the list can do to protect themselves from the fraud.  This includes a secure consumer helpline, to enable people who have received the letter to call in for further information.

The FSA says “boiler room” fraudsters usually contact people by telephone and use high pressure sales tactics to con investors into buying non-tradable, overpriced or even non-existent shares. 

Boiler rooms are unauthorised, overseas-based companies with bogus UK addresses and phone lines routed abroad.

“By writing to people now, we can raise awareness of this type of fraud and help protect people from losing money to these criminals. Legitimate companies should not normally call you out of the blue offering to buy or sell shares. If you get such calls, just hang up and report it,” said Jonathan Phelan, head of the FSA’s unauthorised business department.

"These fraudsters will sound authentic and have legitimate-looking websites, but they just want to steal your money, with little hope of you getting it back.

"If you have already been contacted by a boiler room, do not give them any money or information. Let us know so that we can do everything possible to stop them preying on people in the UK."

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