Stay Scam Smart this Spooky Season
Pensions scams are on the rise with savers losing millions as fraudsters go to extreme lengths to get their hands on cash. Pensions continue to be a common target for scammers, who may appear professional and make appealing promises of high returns at low risk. Often, becoming the victim of a pensions scam can result in the loss of entire pension pots, meaning the retirement that was carefully planned and saved for, becomes out of reach.
One of the best ways to avoid pensions scams is to arm yourself with knowledge of the warning signs. Red flags can include:
- Offers that sound too good to be true with tempting rewards or guaranteed returns
- Opportunities that are only available for a short amount of time, with pressure on you to make fast decisions
- Cold calls, text messages or contact out of the blue with promises of quick cash, legal loopholes and pension loans
- Claims of accessing your pension before age 55
- Free pension reviews
- Transfers of your money overseas
Scammers may also use credible marketing materials to lure you into believing they are legitimate. If you transfer into a scam you run a real risk of losing a significant amount, if not all of your pension savings, as well as high commission or arrangement fees.
There are steps you can take to avoid becoming the victim of a pension scam. Most importantly, it is essential not to share your personal details including financial information unless you’re certain of who you are dealing with. Any Financial Advisers should be registered with the Financial Conduct Authority (FCA). The FCA is the professional body which regulates firms and individuals that provide financial advice. This means the FCA can provide details of authorised advisors who can help you make the best decisions based on your circumstances. It is also crucial to take your time and not be pressured into any financial decisions.
For more information visit the Pension Scams page of our website. To find out more about pension fraud and what to do if you think you have been targeted visit the Pensions Regulator's website.
You can also visit the ScamSmart website for more information on how to protect yourself and to check pension or investment opportunities you've been offered.
