More than £30m has been lost since 2017 to pension fraud, according to an article published on the 26 August by Action Fraud, as scammers tout unrealistic investments. In a recent article on the BBC website (26/8/2020) men aged in their 50s are the most likely victims of fraudsters who target people's long-term pension savings. Both The Pensions Regulator (TPR) and The Financial Conduct Authority (FCA) have launched a campaign against scammers fronted by the football commentator Clive Tyldesley, who will use a raft of football analogies to raise awareness among savers about how to avoid scams.
People can fall for at least one of five common tactics used by pension scammers:
It is estimated some 10.9 million unsolicited pension calls and messages are made a year, according to Citizens Advice.
This provides a lucrative opportunity for fraudsters. Pension freedoms legislation, though enormously popular with consumers, has also created a potentially lucrative opportunity for fraudsters, and people need to be vigilant to safeguard their hard-earned retirement savings. If it sounds too good to be true, then it usually is, and people should be sceptical of investments that are offering unusually high rates of return or which invest in unorthodox products which may be difficult to understand.
There are some simple steps to help avoid these scams and better protect yourself:
You can report suspected frauds on the ActionFraud helpline 0300 123 1047 or online at www.actionfraud.police.uk/report_fraud, and more advice is available at www.thepensionsregulator.gov.uk/pension-scams
At Armstrong Watson Financial Planning & Wealth Management we are a firm of authorised and regulated Chartered Independent Financial Planners who work with you to help build your retirement plans. We can do this remotely via video as well as face to face with the necessary social distancing precautions in place.