The FSA and City of London Police (CoLP) have warned 1,000 UK citizens their personal details are on a ‘master list' used by fraudsters to target and sell them worthless shares.
The names and phone numbers of about 750 people, and the names and addresses of 250 others, are on the list which is the second of its kind discovered by the FSA and CoLP this year.
An FSA letter details what steps people on the list can take to protect themselves from the fraud and what to do if they have already invested. The regulator is also telephoning those people unconnected to an address to offer guidance.
It says it will not ask for any personal details from the people on these lists, so any calls requesting personal information should be treated with caution.
Share fraudsters usually contact people by telephone and use high pressure sales tactics to con investors into buying non-tradable, overpriced or even non-existent shares.
These share fraudsters, commonly know as ‘boiler rooms', are unauthorised, overseas-based companies with bogus UK addresses and phone lines routed abroad.
Any dealings with unauthorised firms are not covered by the financial complaints and compensation schemes.
Jonathan Phelan, head of the unauthorised business department at the FSA, says: "Our sources indicate the list is a new one and still in use by the fraudsters, so by contacting people on it we hope to cut these boiler rooms off at the pass.
"Legitimate share dealers and brokers will not normally cold call people offering to buy or sell shares, so if you get one of these calls - just hang up and report it.
"The key message remains: if it sounds too good to be true, it almost certainly is."
Shareholders are being told to avoid becoming victims of share fraud by hanging up the telephone if they get an ‘out of the blue' call offering them shares and checking anyone offering to sell them shares is registered with the FSA.
Other advice includes calling the named company back using the details on the FSA register to verify their identity and reporting any company which cold calls them to sell shares, to the FSA or the police.
Anybody who has received a letter from the FSA and CoLP concerning Operation WARN, or is concerned about being a victim of share fraud can call 0300 500 5000 for further information.
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