In July 2021, the Financial Conduct Authority published that nearly £2.3m had been stolen in pension scams for the period January 2021 through to May 2021, that’s nearly £500,000 per month. The average victim loses around £50,000. This was during the pandemic and the trend continues today with fraudsters ‘preying’ on those struggling with the cost-of-living crisis.
Signs of a Pension Scam
Combating Pension Scams
Your existing pension scheme provider has now been made responsible for due diligence on where your pension scheme is being transferred to. There has always been a collective responsibility but now your existing pension scheme will be held financially responsible if it allows a transfer out and is a scam.
Pension Fraud Questionnaire
Pension providers are increasingly issuing pension scam or fraud questionnaires when a request for a transfer is made. There are several automatic flags that pension providers look for such as:
The types of questions asked will be along the lines of:
Your existing pension scheme provider may block any transfer until they are satisfied that the transfer and the new scheme are legitimate.
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