FSA's boiler room warning to shareholders
The details of more than 11,000 UK shareholders are on a fraudsters' database, warns UK regulator
Share fraudsters (also known as boiler room fraudsters) are often based overseas and use high-pressure sales techniques to target investors illegally, offering them non-tradable, overpriced or even non-existent shares.
The FSA wrote to the shareholders after acquiring the fraud database with their personal details including names, telephone numbers and addresses, from Canadian authorities. It is likely that the list - which fraudsters typically call a 'suckers list' - has been sold to a number of 'share fraud' gangs.
Shareholders and other consumers can avoid becoming victims of share fraud by:
• Checking that anyone offering to sell them shares is registered with the FSA;
• Calling the company back using the details in the FSA register to verify their authorisation;
• Reporting any company that cold calls them to sell shares, to the FSA; and
• Hanging up the telephone if the caller persists.
"This is a great example of how international co-operation can help protect people from falling victim to share fraud. The details on the database provide fraudsters with valuable information that can be used to convince people they are dealing with legitimate stockbrokers, in order to win their trust," said Jonathan Phelan, head of retail enforcement at the FSA. "These criminals sound authentic, are smooth talkers and can be very persistent. If anyone calls you out of the blue offering to sell shares, just hang up or you stand to lose a lot of money with very little hope of ever getting it back."
The FSA hosted the first ever boiler room conference in November to further encourage international co-operation in tackling share fraud. The conference was attended by representatives from international financial regulators, law enforcement agencies, the UK Government and the banking world.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Iosco pre-hedging review: more RFQs than answers
Latest proposals leave observers weighing new clampdown on pre-hedging
FCMs welcome CFTC margin rule ring-fencing clarification
Final rule on separate accounts replicates no-action relief as Republicans strip out gold plate
Stuck in the middle with EU: dealers clash over FRTB timing
Largest banks want Commission to delay implementation, but it’s not the legislator’s only option
Treasury clearing timeline ‘too aggressive’ says BofA rates head
Sifma gears up for extension talks with incoming SEC and Treasury officials
Rostin Behnam’s unfinished business
Next CFTC chair must finish the work Behnam started on crypto regulation and conflicts of interest
European Commission in ‘listening mode’ on potential FRTB changes
Delay or relief measures on the table after UK postpones start of Basel III to 2027
Australian FRTB projects slow down amid scheduling uncertainty
Market risk experts think Apra might soften NMRF regime to spur internal model adoption
EBA to address double-counting caused by new capital floor
Existing EU capital add-ons for model risk would duplicate new Basel floor on internal models