AN URGENT warning to all telephone users against a scam costing up to £500 has proved to be phoney.

Wiltshire Police had issued a caution to phone users that a recorded message reporting the winning of an all expenses paid holiday added between £260-500 onto the telephone bill.

The rumour began to spread on the internet on Friday and Wiltshire Police were acting on information from British Telecom.

But a spokesman for the independent committee for the supervision of telephone information services, said: "Despite the hundreds of inquiries received about this scam, and most have heard about it second or third-hand, not one person has been able to produce a phone bill to support their story.

"ICSTIC urges anyone who receives an e-mail about the scam to delete it immediately."

Telephone regulators claim the scam is unfeasible because the highest premium rate tariff is £1.50 per minute.