Pension Scam Advice By Action Fraud

Action Fraud warns off pension fraud.

 

Advice has been issued to help individuals avoid falling victim to pension scams that lure them into releasing money from their savings.

Action Fraud has warned people to stay vigilant, as new data has revealed that £17.7 million was lost nationally to pension fraud last year.

The scams usually involve an appealing offer persuading people to transfer money from their pensions or offering them early access to pension money, called a “pension liberation” or a “pension loan”.

Pension fraud can also come in the guise of pension review offers, where fraudsters propose “free” advice with the goal of convincing a victim to move money into a high-risk investment scheme.

The investments are often mismanaged, unprofitable, or outright scams, resulting in victims losing their entire investment.

Other tricks include pension transfer opportunities or offers to help release money from savings, even if the victim is under 55.

Key warning signs that you may have been contacted by criminals are if you’ve been offered a guaranteed better return on your pension savings.

Other signs include being convinced to invest in unusual schemes which are often unregulated and complicated, making it unclear where the pension money may end up.

Claire Webb, Acting Director of Action Fraud, said: “Criminals will go to great lengths to trick anyone out of their money, in this case, it’s someone’s life savings at risk.

“Losing any sum of money saved for retirement can be devastating.

“Avoid pension opportunities offered out of the blue, like pension reviews or too good to be true investment opportunities. 

“Don’t let anyone rush you into making big decisions and seek advice from an independent professional service or trusted family and friends.”

The best way to protect yourself is by immediately hanging up if you receive a cold call concerning your pension. 

Action Fraud also recommends that you should seek expert advice before making any decisions regarding your pension and you should only trust advisers authorised by the Financial Conduct Authority. 

If you have been scammed and need help to recover your money fill out our Fraud Reclaim Form or call us for advice on 0333 9998791.