ActionAid UK today issued a warning over a hoax email which tells people the charity has awarded them £850,000 to help social and business development in their community.

The alert came after Leicester-based Barbara Jacobs, a writer and journalist, told ActionAid that she had received two emails as "one of the final recipients of a cash grant/donation".

They urged her to contact the ActionAid UK 'secretary'.

The emails said the charity, together with the European Council, is giving £100m to 150 international beneficiaries worldwide in different categories, based on Internet random selection.

The scam is to obtain people's bank account details or tell them they must pay a small amount to collect their money.

The people who sent the emails used the surnames of two men associated with ActionAid.

The emails listed telephone numbers which turned out to be barred from callers.

It also, though, gave fax numbers and an email address.

Rudi Lewin, ActionAid UK finance director, said: "We much appreciate Ms Jacobs alerting us to this deception. The matter is now being investigated by the police, the Charity Commission and the Internet companies Google and Yahoo.

"If anyone receives a similar e-mail, please get in touch with us. This may help us stop this sham in its tracks."

People who receive the email can send the details to report-phishing-email@actionaid.org.uk