FSA urges clampdown on bogus brokers

The Financial Services
(FSA) is urging global regulators and law enforcement agencies to
clamp down on bogus brokers defrauding 30,000 Britons to the tune £300m a year.

A string of companies have recently warned shareholders about fraudulent
behaviour. A fortnight ago Fenner, a £180m engineer, said shareholders had been
approached by a third party ‘purporting to be acting with Fenner’s consent’,
The Daily Telegraph reports.

FSA is understood to be investigating this type of share fraud which is on
the increase, impostors contacting people who are on shareholders’ registers and
after building a rapport with them, make an offer to buy or sell shares in the
company in return for a fee. Once the fee is sent, the alleged broker

An FSA spokesperson said these fraudsters were ‘cloning legitimate firms to
use their details’, saying the FSA had updated its advice to shareholders who
received cold calls, urging them to telephone the number of the registered
company, as opposed to the number given out by individuals.

Further reading:

Fraud-as-a-service looms over firms

The Daily Telegraph story

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