A GLASGOW man has been arrested in connection with an alleged 'boiler room fraud'.

The 41-year-old was arrested in Glasgow yesterday by City of London police officers, who were co-ordinating the operation.

He is alleged to have been part of a group that made £3 million selling fake investments in rare and expensive metals. So-called boiler room frauds involve call centre-style approaches to victims.

Police said the man was held on suspicion of conspiracy to defraud and money laundering.

Other search warrants were also executed in Harlow, Essex.

The illegal operation is believed to have persuaded up to 250 people to put their savings into bogus investments in substances, such as platinum and palladium, which is used to make catalytic converters for cars.

One victim invested more than £200,000 in the scheme.

Detectives in London became aware of the case when reports were received by Action Fraud, which is hosted by the force along with National Fraud Intelligence Bureau.

Detective Inspector Nigel Howard said: "Today's operation highlights the City of London Police's countrywide reach in pursuit of those suspected of being involved in the most serious and impactful cases of fraud.

"Boiler room fraud in particular is a highly damaging offence that can have a devastating effect on people who fall into the carefully and cleverly laid traps set by the criminals.

"The product they are selling often changes but the methodology behind it stays the same - cold-callers targeted mainly elderly and vulnerable people in their own home.

"To stop yourself being a victim of this crime you should hang up the phone on anyone who contacts you out of the blue trying to sell you something. Doing this is the best way to protect both your savings and your future from being taken away from you."

Last year, more than 5200 investors from across the UK lost a total of £1.73 billion to investment fraud.