KCOM has issued a warning to its shareholders after reports they have been targeted by phone scammers.
Fake calls have been made to shareholders at the Hull broadband provider, offering to pay an inflated price way above market value for KCOM shares.
The scammer often claims to be from an investment firm which is interested in KCOM, but the caller then asks the shareholder to provide information such as email address or banking details.
Earlier this month, a £627m takeover offer for KCOM by Australian investment firm Macquarie was finalised.
Worth 120.3p per KCOM share, one shareholder told Hull Live on Monday that he was called by a scammer, and was made an “offer” worth £6 per share.
He said: “I was called by someone who said they were from a New York-based investment firm.
“They said a buyer was interested in putting a bid in for KCOM, worth around £6 per share.
“That is when I realised something wasn’t right. If the offer was for £2 or £3 per share, it might have sounded a bit more believable.
“They were trying to make out someone was sniffing around KCOM, even though the deal with Macquarie has already been confirmed.”
This type of fraud is called a “boiler room” scam and aims to convince people to part with sensitive financial information or even send share certificates.
Cathy Phillips, chief marketing officer at KCOM, urged customers to be extra vigilant when receiving unexpected calls and to be alert for fraudsters when online.
She said: “We have recently seen a spate of scam callers offering to buy KCOM shares at inflated prices. Anyone ringing and offering an inflated price for your shares is a potential scammer. If a deal seems too good to be true then it almost certainly is.
“The best way for people to protect themselves is to treat any requests for bank details or indeed any personal information, with extreme caution. If you are ever suspicious about a call, we recommend you hang up immediately.
“If you want to sell your shares then we recommend that you do so through a recognised, authorised broker.”
If you receive a potential scam call or suspicious email, please report it to Action Fraud, the UK's national fraud and cybercrime reporting centre by calling 0330 123 2040 or by visiting www.actionfraud.police.uk .
