As a result of the increased market uncertainty caused in part by the COVID-19 pandemic, financial regulators are seeing a surge in pension scams. It is thought that fraudsters will prey on people’s worries and concerns about their financial future and trick them into transferring their pensions to these scammers or get members to take money out of their pension pots illegally. We therefore encourage you to read these important tips and advice on pension scams.
Avoiding a pension scam – what to look out for?
The tactics that scammers use are evolving all the time, but there are some red flags which you can easily look out for to avoid falling victim to a pension scam.
Reject unexpected offers - If you’re contacted out of the blue about a pension opportunity, it’s likely to be high risk or a scam. Be wary of any free offers and if you receive a marketing call about your pension the best thing you can do is to hang up. Also watch out for text messages with misleading links. Scammers will try and entice you any way they can.
Don’t be pressured or rush into anything - During the current climate you may be worried about how your pension is performing. It’s important you don’t rush into a decision as criminals try to take advantage of any fears you may have. If you do make any decisions, take your time, do your research and make sure that your pension is safe.
Always check who you are dealing with - Check the Financial Services Register, which will tell you if the company who is contacting you is registered by the Financial Conduct Authority (FCA). Also be wary of ‘clone’ companies using a similar name. If in doubt check the register and use the contact details used there – not the ones given to you. Review the FCA warning list to check the risk of a pension or investment opportunity and make sure that the company is authorised by the FCA and it’s not a scam.
Get help and advice - If you are seriously considering changing your pension arrangements then consider getting financial guidance or advice before you do, either from The Pensions Advisory Service, Pension Wise or an independent financial adviser.
You can watch our video on pension scams and what to look out for here.
ScamSmart is an FCA regulated website providing information on how to avoid investment and pension scams. Visit www.fca.org.uk/scamsmart for more information.