In the first quarter of 2021 £1.8 million was lost to scammers.
Cold calling about pensions is illegal and a likely sign of a scam. Since the cold-call ban was introduced in 2019 scammers tactics have evolved. They are targeting people searching for investments online and through social media.
Scammers try to persuade you to transfer your entire pension savings, or to release funds from it, by making attractive-sounding promises they have no intention of keeping. Tactics they use include:
- phrases such as “free pension review,” “one off investment” and “loophole”
- offer access to money before age 55 without mentioning the possible tax implications.
- high pressured sales, deliver and wait whilst you sign documents
- although they offer high returns to tempt you into investing, they may also offer realistic returns to make their offer appear more legitimate
- introduced via a friend or family member who is unwittingly a victim of the scammer.
More information is available through The Pension Regulator who have produced a leaflet on avoiding pension scams.
Before transferring pension savings we would recommend you visit the ScamSmart website to check the firm you are dealing with is regulated and whether what you’re being offered is a known scam or has the signs of a scam.