Scammers Have Stolen Over £30 Million Through Pension Scams
If you are a pension saver, you need to be on the lookout for pension scams because in just 3 years, over £30m has been lost to these scams. The Pension Regulator (TPR) and the Financial Conduct Authority (FCA) have released data showing that scammers have stolen £30,857,329 since 2017 according to complaints collected by Action Fraud. These scammers are not only hitting big savers as research has shown that the loss range can be as low as £1,000 or as high as £50,000.
Attractive offers are a common tool being used by these scammers. These offers are meant to persuade people to transfer their savings to the scammers. Their persuasion tricks include offering deadlines and “time-limited offers” to increase pressure on pension savers to transfer their savings to the scammers.
An executive director of enforcement and market oversight at the FCA, Mark Steward, says that it is more important than ever to protect your savings in these uncertain times. He continues by saying scammers now use every trick they have and seek every opportunity to exploit those who may not know what is going on or those not aware of their tricks and scams. This is regardless of how much you have in your savings.
To protect yourself, Steward advises you to thoroughly research a firm before transferring your pension to them. This can be done by checking the FCA register and talking to a firm authorised and regulated by the FCA, such as Portafina, before transferring your pension or making any changes to it.
More People Know About Finances in Football Than They Do About Their Pensions
One of the things to come out from the information released by The Pension Regulator and the Financial Conduct Authority is that the number of people who have fallen victims to these scams is much higher than the number reported by Action Fraud. This is because most savers do not know how to spot and avoid these scams, with many of them not knowing how much they have in their pension pot.
For football fans approaching retirement, research has found that only 43% of them know how much they have in their pension pot. 45% of them do how to ensure someone who approaches them to talk about their pension is legitimate or not.
To help rectify the situation and help people avoid “time-limited offer” scams, The Pension Regulator and the Financial Conduct Authority are working together with Clive Tyldesley, a football commentator, in a campaign dubbed ScamSmart.
Tyldesley admits that scammers have perfected the art of breaking down people’s defences. They have also learned how to put people under pressure so that they do what the scammers want. Using football metaphors, he urges people to use the same caution football teams use when deciding whether or not to buy a new player.
Just like a football team, people should seek information, check out the person talking to them about their pension and do thorough research. He also advises people to slow down, take their time, ask for advice and talk to an adviser authorised by the FCA before making any moves.
