Fraud gangs 'targeting students'

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Criminal gangs are targeting UK university students to sell fake shares in so-called boiler room scams, the BBC has learned.

Fraudsters cheat UK investors out of about £530m-a-year by selling worthless shares over the phone, police say.

Officers made one arrest while raiding a recruitment day where people were attending interviews for jobs with what they thought was a legitimate company.

Police have warned students to "check the validity of jobs" they apply for.

The recruitment day was organised by a company which claimed to be a finance house looking for staff to travel to its Madrid office.

The company placed advertisements on a number of websites, including those of Manchester and Bristol universities.

One advertisement stated that the company was "looking for a graduate to join our vibrant sales team abroad".

It went on: "The successful candidate will have an excellent telephone manner, be highly competitive, target driven, exude confidence and above all be financially driven.

What reassured me was that I saw it on Bristol University website so it made me feel this must be OK Ben <a class="" href="/1/hi/business/5202550.stm">Q&A: Boiler room scams</a>

"The job role itself is very fast paced along with being both financially and mentally rewarding."

And it stated that "flights and accommodation are paid for".

Candidates were initially spoken to over the phone before being asked to attend interviews which were to take place in the City of London.

The people behind the advert rented some rooms and are suspected of being boiler room operators who work internationally but are known to target British investors.

The interviews were interrupted by fraud squad officers from City of London police.

Recent graduate Ben, 23, told BBC Radio 4's You and Yours he was contacted and called for an interview after placing his CV on a recruitment website.

He found the advert on Bristol University's careers website.

"I saw genuine adverts on Gumtree and Cityjobs, but what reassured me was that I saw it on Bristol University website so it made me feel this must be OK," he said.

You and Yours has also found the adverts on Manchester University careers websites, which are only open to students.

'Criminal gangs'

The universities in Manchester and Bristol say they do all they can to check the veracity of advertisement and the companies behind them.

None of the young people involved face any further action.

Meanwhile, the individual arrested by City of London police has been released on bail pending further inquiries.

In the UK, victims of boiler room scams lose an estimated £530m each year, according to police figures obtained by You and Yours.

Police are asking students and their parents to be wary of apparently highly paid jobs, always cold calling people from abroad.

Det Ch Insp Paul Barnard of City of London Police, who is leading the operation which prompted the raid, said "boiler rooms are ruthless organised criminal gangs who will con investors out of their hard-earned savings, but also con or in some cases force young bright ambitious people to sell the non-existent shares to them".

"Parents and students alike should be very careful to check the validity of jobs they're applying for," he said.