Warning to #ProtectYourPension from fraud

 

Savers and those reaching retirement age are being warned to protect their pensions and look out for criminals trying to catch people out of their life savings, with Action Fraud revealing a total annual loss of £17,567,249. This equates to roughly £48,129 lost to this type of fraud per day in 2024. Data reveals there were 519 reports of pension fraud in total and £17,567,249 lost in 2024, with an average loss of £33,848 per person. Action Fraud, with support from the Pension Scams Action Group (PSAG), launched a pension fraud awareness campaign, warning people to take extra measures to protect their pension scheme accounts and to be cautious of investment opportunity offers from criminals that could be targeting them. How can you protect yourself against Pension fraud? Secure your online pension account: the account you use to manage your pension should have a different password to all of your other accounts. Use three random words to create a strong and memorable password, and enable 2-step verification (2SV).  Ignore unsolicited calls about your pension: cold calling about pensions is illegal and likely a sign of a scam. If you’re thinking about changing your pension arrangements, you should get financial guidance or advice beforehand.  Investment opportunities: don’t be rushed into making an investment. Remember, legitimate organisations will never pressure you into investing on the spot.  You should treat investment opportunities with extreme caution if there’s:  Pressure to invest (for example: time-limited offers). Downplayed risk of losing your money. Promised returns that sound too good to be true. Remember to Stop! Think Fraud and find more information on how to protect yourself from fraud here: Stop! Think Fraud - How to stay safe from scams What can you do if you have been a victim of pension fraud? Report pension scams: if you’re worried about a potential pension scam or you think you may have been contacted by a criminal, report it to Action Fraud at actionfraud.police.uk or by calling 0300 123 2040. If you have made a payment: inform your bank or pension provider as soon as possible, they can help you prevent any further losses. Monitor your bank and pension statements regularly for any unusual activity.  https://www.actionfraud.police.uk/news/pensionfraud

Be Alert: Which? Reader Loses £96,000 in Complex Pension Scam

A reader contacted Which? after falling victim to a scam involving a cold call and a fake "pension review." They were persuaded to transfer £96,000 into an unauthorized overseas scheme. While Which? could help recover some of the losses, the fight for the remaining funds continues.

This story highlights the danger of pension scams and the importance of seeking expert advice if you suspect you've been targeted. Remember, if something sounds too good to be true, it probably is.

Source: Which? (28 Feb 2024)

Be Aware - Pension liberation schemes

Scammers are bombarding people aged 55+ with bogus investment opportunities to try to get hold of their pension savings. One of the most common scams since the pension freedoms were announced involves alleged investment opportunities abroad. Consumers have been offered free pension advice or investment opportunities by phone, text, or email.

Low interest rates have tempted people to take extra risks, making them vulnerable to such fake investments. Fraudsters can approach you by post, email, or phone.

Fight back:  If you’re offered a ‘must-have’ investment or a free pension review out of the blue, be wary. Also be concerned if you’re warned that the deal is limited, and you must act now. Choosing the right retirement income product is a big decision and shouldn’t be done quickly or under pressure.

Consult a registered independent financial adviser. If you think that you may have been made a fraudulent offer, contact Action Fraud on 0300 1232040. You could also visit the FCA’s ScamSmart site.

Be smart and check to see an investment or pension opportunity you’ve been offered and avoid investment and pension scams here on the FCA Warning List.

Stay alert and aware of your pension options

Action Fraud is warning savers to remain vigilant and protect their pensions, as figures from the national reporting centre for fraud and cyber crime reveal £1.8 million has already been lost to pension fraud this year.

Source and further details: Action Fraud 20-04-2021