The Insolvency Service has urged individuals saving for retirement to protect their pension pots from criminals and ‘negligent trustees’.
Research carried out by the Service found that criminals use a range of tactics to convince savers to part with their funds, including persuading individuals to access their pension and invest in unregulated schemes.
Pension scam victims lost an average of £91,000 to criminals in 2018, according to Financial Conduct Authority research. Criminals often use cold-calls and offers of free pension reviews to convince their victims to comply.
The Insolvency Service has urged savers to be wary of calls that come out of the blue; to seek financial advice before altering their pension arrangements or making investments; and to not be pressured into making decisions about their pension.
Conservative Minister Kelly Tolhurst said:
‘If you are approached to make an investment from your pension, always do your homework and seek independent advice, if necessary, to help you make an informed decision.
‘The government continues to work closely with the Insolvency Service who are working to clamp down on rogue companies targeting vulnerable people.’
The “Be a smart investor” section of the FCA website has further information about scams, and if you suspect you have been the target of a scam you can report it through the UK’s national reporting Centre for fraud and cybercrime in England, Wales and Northern Ireland.
Please speak to us if you want to know more about protecting yourself from fraud.