Share selling scam targeted at Tata Steel workers

The future of the Scunthorpe steel works was the subject of intense speculation before Tata Steel announced on Monday that it had reached an agreement to sell its Long Products Europe business to Greybull Capital.

And it seems fraudsters may have sought to capitalise on the climate of uncertainty, as Humberside Police today said it had received a number of reports that people had been approached by a number of companies based in the United States, offering to buys shares for far more than their market value.

Detective Constable Kevin Searby said: “In most cases, contact begins via the phone and the offenders then build up a relationship with the victim over a period of days or even weeks, during which the offenders say they are searching for any bonus shares held by the victim.

“Over this time, they begin to collect personal details such as the victim’s address and email address, before informing them they own shares, which the firm is willing to pay between £8-18 each for.

“The firm then sends the victim a non-disclosure form to sign, which prevents them from discussing the deal with any third party. They claim the reason for this is to prevent Tata from finding out about the sale of the shares, to prevent them raising the price.

“In reality it is designed to obtain the victim’s signature and to stop the victim seeking advice.

“Once the form is returned, the offenders contact the victim again telling them they wish to go ahead with the sale, but in order to proceed they require an insurance bond equating to around 10 per cent of their value – which will be returned to the victim once the sale is completed.

“However, this is a scam designed to get the victim to hand over cash and their financial details.”

The force is warning people not to give out personal information over the phone and to beware of emails asking for verification of personal details by clicking a link.

To avoid such scams, people are also advised to destroy any receipts with card details on them and any post with displaying name and address details to prevent identity cloning.

Other tips include making sure computers have up-to-date anti-virus software installed and when shopping online, use Verified by Visa or Mastercard Secure Code.

Anyone who believes they have been targeted by a scam is asked to report it to Action Fraud or call 0300 123 2040.