Feeds

Net share sting claims UK victims

Pumped then dumped

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

A small Welsh business lost a "substantial amount of
money" after buying shares in a non-existent company which lived only online.

The fraudsters behind the scam also ensnared a Manchester-based businessman and theire could be many more British and Irish victims, according to the Puget Sound Business Journal.

Alpha Fasteners, in Brecon, says it was conned by a Zurich-based concern called Smith Fairchild which claimed to be a major VC.

Smith Fairchild contacted Alpha in March this year, pumping shares in a Seattle-based company called Sun Biometrics, supposedly soon to get a listing on NASDAQ.

Alpha Fasteners researched the company online and duly parted with its cash. In return it received a certificate for the purchase delivered by courier.

The fraudsters then pushed their luck. In June, yet another company, called Warren and Baker, appeared on the scene. The new players told Alpha Fastening that their shares "were doing very well, but they needed to pay an extra bond".

At last the penny dropped for Alpha, which promptly got on the blower to the Financial Services Authority. The FSA informed them that there were no such companies as Sun Biometric, Smith Fairchild and Warren and Baker. Their Web presence was entirely illusory.

Here are the URLs which fooled Alpha

www.smithfairchild.com
www.sunbiometrics.biz
www.warrenandbaker.com

As you can see Sun Biometrics site is still live.

Alpha paid for its shares through Wells Fargo bank in the US and HSBC in Taiwan. This gave it a false sense of confidence, it told the Forum of Private Business (FPB).

The Sun Biometrics scam was set up over months, by fraudsters operating out of many countries. Puget Sound Business Journal has an excellent, exhaustively-researched feature on the sting. ®

Security for virtualized datacentres

More from The Register

next story
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
4chan outraged by Emma Watson nudie photo leak SCAM
In the immortal words of Shaggy, it wasn't me us ... amirite?
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.