RBS Business Banking | Share sale fraud

About share sale fraud

This usually begins with a cold call, or an email, at home or at work by someone trying to convince you to invest in shares that they are selling. The contact will appear to be professional, knowledgeable and sympathetic. The name of the company often sounds very similar to a well known financial company in an attempt to convince you it is genuine, however the shares being sold will often be worthless or non existent. 

The shares will not be quoted on the stock exchange and will be virtually impossible to sell. You may find after you have remitted funds that you cannot contact the person who sold you the “shares”.

Victims may therefore find it impossible to recover any losses as such companies are not covered by any regulated compensation scheme.

Victims of boiler room fraud and other investment scams are often targeted by criminals offering to help those that have already lost money. These scams are run from what the fraudsters call ‘recovery rooms’ and might even be carried out by the same group. Find out how to avoid becoming a victim of recovery room fraud.

Individuals need to be vigilant and if they are unsure or concerned about any form of investment, they should seek independent legal and/or financial advice before proceeding.

•FSA’s Description of Share Sale Fraud www.fsa.gov.uk
•ActionFraud’s Website for Reporting Fraud and Internet crime www.actionfraud.police.uk
•National Fraud Intelligence Bureau www.nfib.police.uk
•Money Advice Service on Scams www.moneyadviceservice.org.uk
•Share Fraud and Boiler Room Reporting Form www.fsa.gov.uk

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