Boiler room scam targets Computacenter shareholders

Those approached should contact the Financial Services Authority but may not be eligible for compensation

Computacenter shareholders have been targeted by fraudulent brokers operating a so-called boiler room scam, according to a notice to investors.

"The directors are aware that some shareholders have been contacted by 'brokers' from overseas, usually from the USA, offering very high prices for their shares in the company," the company wrote.

"We would advise shareholders not to engage in discussions with these 'brokers' and to report any such activity to the Financial Services Authority (FSA)."

The reseller said any shareholders affected or contacted should go the FSA website and complete an online report.

According to the FSA, many companies have been targeted by such scams in recent years, and the average amount lost by investors is about £20,000.

"[However] if you deal with an unauthorised firm, you will not be eligible to receive payment under the Financial Services Compensation Scheme," it warns in its specific advice on boiler room scams.

The scam usually takes the form of an unsolicited phone call or other correspondence purporting to be about investment matters, typically from abroad. The scammers usually offer to sell shares in a specific US or UK company – which then turn out to be worthless or very high risk.

"These ‘brokers' can be very persistent and extremely persuasive," the FSA said. "It is not just the novice investor that has been duped in this way; many of the victims had been successfully investing for several years. Shareholders are advised to be very wary of any unsolicited advice, offers to buy shares at a discount or offers of free company reports."

In 2011, the FSA received 5,401 reports of boiler room scams, up 19 per cent from 2010. However, the number of people actually victimised by the scam attempt fell seven per cent to 770.

Computacenter was contacted for further information on whether any shareholders had lost funds but had not responded at the time of publication.