Regulators Warn Cyber Targets
Regulators in the United Kingdom are planning to contact a list of 38,000 potential share fraud targets after authorities recovered a “sucker list” used by cyber criminals.
The Financial Services Authority plans to write to each of the individuals named on the list to inform them that their information is being circulated by “boiler room” share fraud criminals. Boiler rooms generally do not operate in the targeted country, making prosecution difficult.
The list includes names, addresses and phone numbers of targets, as well as interests and shares the individuals already hold. The cyber criminals approach the targets and look to aggressively sell non-existent, over-priced or non-tradeable shares. The list is believed to be currently in use.
“This is the biggest list we’ve ever recovered and by acting quickly and contacting every single person on it we’re hoping we can stop people losing money,” Jonathan Phelan, the FSA’s head of unauthorised business, said. “Boiler room fraudsters often sound professional so it’s easy to be drawn in by their overblown claims and give them money to invest. The reality is however that the shares are worthless or don’t exist and the money is lost forever.”
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Warning is a start, no doubt, but could push defrauders to find alternate methods of stealing and scamming. We don’t just worn victims when it comes to other crimes because it doesn’t stop the problem. Eventually, the ones responsible, will need to be held accountable…