THE FBI has launched an inquiry after a British couple paid £4,700 for a Rolex watch at an Internet auction - but only received a photo of it through the post.

Disabled Tom Shead, from Peterlee, County Durham, wanted to treat his wife Carol for her 54th birthday. He had successfully bought many other goods via his computer, so he was not suspicious.

The couple thought they had snapped up an authentic 18 carat gold Rolex with a diamond bevel, gold diamond dial, and diamond presidential bracelet, which normally costs up to £25,000 new.

But after the money left their bank account, they were only sent a photo of the watch from the US.

Later, they received an e-mail from the seller - believed to be an 18-year-old student at the University of Seattle - which told them they had only bid for the picture, not the article itself.

They contacted police in County Durham who have passed on details to FBI detectives.

Even though ex-miner Mr Shead and his wife have been told an arrest is imminent, they know they probably won't get their life savings back from the suspect.

Mrs Shead said: "I was quite elated to think I had got a watch of that calibre at that price.

"But he has taken every penny we have saved."

Detective Constable Brian Roberts, of Durham Police, has liaised with US counterparts in Seattle

He said: This is the first case like this I have come across, but apparently Internet fraud is a big problem in America.''