Beware B&B rights issue scam

By DAILY MAIL REPORTER
Updated:

 

Conmen are preying on people who have been offered rights-issue share offers by Bradford & Bingley.

The bank has been involved in a rights issue to raise funds. This involves offering existing shareholders the chance to buy more shares in the company at a set price.

Fraudsters are getting hold of the bank's list of shareholders, which is publicly available.

In what is called a boiler-room scam, they call the shareholders and offer to sort out the rights issue.

The shareholder pays for this service and then the company, which is normally based overseas, disappears.

City watchdog the Financial Services Authority (FSA) last week warned all UK listed companies to help protect their shareholders from conmen.

Anyone who receives a call out-of-the-blue from a broker should check the firm is registered with the FSA. You should also report to the FSA any company that coldcalls to sell shares.

• Don't miss our full round-up on what you should do about the Bradford & Bingley rights issue: B&B rights issue

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