UNSUSPECTING residents in Bournemouth are being targeted by "boiler room" scams - overseas operations using high-pressure phone selling techniques to persuade investors to purchase virtually worthless shares.

According to the Financial Services Authority, boiler rooms prey on older, male investors, particularly in London and the South East, with victims losing an average of £20,000.

The Daily Echo's John Nesbitt received three phone calls in three days from a company offering him shares with US Petroleum Holdings.

He said: "The woman at the other end was very persuasive, saying she was offering me an incredible opportunity following an oil company merger in Bahrain.

"The shares had gone up 25 per cent in the last week, she claimed, and she even invited me to visit the company's five new wells.

"There was no way that I was going to write a cheque following a phone conversation but it worries me that other people could be taken in by the sales pitch."

FSA head of retail enforcement Jonathan Phelan said: "Sadly, victims are unlikely to see their money again because their shares will have been overpriced and nearly impossible to sell.

"Boiler rooms are not authorised by the FSA and are based abroad, outside our reach, so victims are not protected by the financial services compensation and complaints schemes."

Andy Sherriff, Bournemouth's principal trading standards officer, said: "Boiler room scams like US Petroleum Holdings are growing increasingly common as more people become familiar with stocks and shares and possibly have a little nest-egg set aside.

"Even if the shares really exist it's likely that they are unduly hyped by salesmen who have their own interests at heart, not yours.

"What's more, while you sit back and wait for the share value to rise the chance of getting your money back rapidly disappears.

"I suspect there's more oil on the average bike chain that in US Petroleum's resources. The message is simple - don't have anything to do with people who ring you out of the blue, whatever they offer you."