5 Million At Risk To Pension Scams

Published / Last Updated on 10/08/2019

The Financial Conduct Authority (FCA) and The Pensions Regulator (TPR) have issued another joint notice as part of the ScamSmart campaign to continue warning people about pension scammers.

In the warning, consumers are adviser to watch out for:

  • Companies cold calling and offering exciting investments
  • Persuading early access to your pension pot before age 55.
  • Free pension reviews
  • Claiming to get you higher returns
  • Offers that have a time limit

Research has found that many financially experienced people also fall for scam tactics resulting in

  • 23% between 45-65 year olds would be persuaded by exciting offers
  • 17% would be persuaded by accessing their pension early
  • 23% of those surveyed even knowing about the Government’s ban on cold-calling, said: “if a company called them out the blue about their pension, nearly a quarter said they would ask for further information or get a website address"

Overall, 42%, that’s over 5 million people, in the UK are still at risk from pension scammers with figures rising to 60% where people are actively looking for ways to boost their pension..

Minister for Pensions and Financial Inclusion said: “Last year’s ScamSmart campaign stopped hundreds of people being scammed and losing as much as £34 million, this years campaign needs to be bigger and better”.

FCA Executive Director of Enforcement and Market Oversight, Mark Steward said: “Get to know the warning signs, check who you are dealing with and make sure they are an FCA authorised firm”.

4 points to protect yourself from pension scams:

  1. Beware any unexpected offers made online, phone or social media – reject immediately
  2. Any company or person you deal with should be checked that they are on the FCA register https://register.fca.org.uk/ or by calling 0800 111 6768
  3. Don’t be rushed or pressured into making any decision about your pension
  4. Consider getting impartial advice and information.

Visit www.fca.org.uk/scamsmart to find out more.

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