The Blades share scam

The Financial Services Authority (FSA) is warning shareholders in Sheffield United plc, the holding company for Sheffield United football club, to treat approaches from a Japanese company called Sumitomo Financial Corporation with caution.

Sumitomo Financial Corporation is thought to be imitating legitimate firms Sumitomo Mitsui Banking Corporation and Sumitomo Mitsui Financial Group Inc.

Sumitomo is contacting shareholders in an attempt to buy their shares in The Blades, but first requesting they pay an upfront fee for the transaction.

This is a classic investment scam, where investors are promised an inflated value for their shares and never see their money again once the upfront fee has been paid.

It’s not the first time scam artists have approached football fans.

The FSA has previously warned about similar scams targeting investors in Millwall football club and Birmingham City football club.

In order to avoid investment scams, you should only deal with authorised and regulated firms. Always seek a second opinion from a registered independent financial adviser if you have any suspicions.

If an investment opportunity seems too good to be true, it usually is!

For more information on avoiding the most common investment scams, there is some very good information on the FSA website.

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