Warning to customers
Boiler room and other scams
17 February 2011
Be aware and protect yourself against fraud
During 2010 Aviva has detected an increasing number of fraudsters attempting to use the Aviva name in connection with frauds against members of the public, or attempting to target our shareholders. Typically these will involve offers to sell or buy shares or for non-existent investment funds. The sophistication of these frauds has increased over the years and they often involve fake websites and call centres - these are known as "boiler room" scams.
Fraudsters can be very convincing and persistent and can appear very professional and it's not just novice investors who can be taken in. The initial contact is usually a telephone call or email out of the blue. They may offer unsolicited advice, offer to buy or sell shares at a discount, offer free "reports" into a company, or offer investment opportunities into "Aviva" funds.
The fraudsters pass contact details of potential victims between themselves, so the same person may often receive several scam "offers". They are generally based outside the UK, although they may use UK web addresses, PO Boxes or phone numbers, each of which will be rerouted abroad. Because they are based overseas, it is difficult for Aviva, the FSA or the police to close them down. When we detect a possible fraud, we liaise with the Serious Organised Crime Agency (SOCA), the Police and the FSA.
Different types of scams
- Offers to buy shares you already hold, often at a higher price than their market value.
- Offers to participate in an investment fund.
- Encouragement to sell your blue chip shares in banks and financial institutions to invest in green or high technology shares marketed by the boiler rooms.
- Offers of help from "recovery rooms" who offer assistance to those defrauded by boiler rooms. They approach victims of boiler room fraud and, for an upfront fee, promise to review their case and obtain reimbursement from a European Court fund or other legal avenue.
- Fake lotteries where you are told you have won a substantial amount of money in a lottery but have to pay a "clearance fee" or "tax fee".
- Job offers which seem to have come from Aviva, offering you a job as a "payment representative" to process overseas payments for us. These may collect personal data from you for use in further frauds, or be looking to involve you in money laundering of the proceeds of other crimes.
Protect yourself - Avoid becoming a victim of fraud
- Remain vigilant - be very wary of any unsolicited advice, offers to buy shares at a discount, unsolicited investment opportunities, offers of free company reports or lotteries/prize draws you have "won" which you never entered.
- Check that anyone who is offering to sell your shares or arrange investments for you is registered with the FSA. You can check this at www.fsa.gov.uk/register.
- You can also check the FSA's guidance on Scams and Swindles at www.fsa.gov.uk/Pages/consumerinformation/scamsandswindles/index.shtml this includes details of both UK based and overseas organisations who are known by the FSA to have been carrying out unauthorised financial services activities as well as tips on what to look out for.
- If you are concerned whether an approach from somebody claiming to be Aviva genuinely is Aviva, contact us directly. If you have suspicions as to whether the person contacting you is genuine:
- If relating to a policy or investment offer, you can also contact our Aviva Group Investigations team by email at financial.crime@aviva.com or call 01738 895514 or 01603 689871# (0044 895514 or 0044 1603 689871 if overseas); or
- If the approach relates to Aviva shares, inform our registrar, Computershare, by telephoning 0871 495 0105*.
- If you have received any unsolicited investment advice or think you may have been contacted in relation to a possible scam, you can report this to the National Fraud Authority www.actionfraud.org.uk
- If calls persist, hang up.
# Calls to these numbers will be charged at standard national rates if calling from the UK.
* Calls to this number will be charged at 8 pence per minute from a BT landline in the UK. Charges from their telephone providers may vary.
