Pension scams can be hard to spot, and in this article, we wanted to provide you with more information as to how pension scams work, how you can avoid them and what you should do if you suspect a scam.
Unfortunately, scammers can be articulate and financially knowledgeable individuals, with credible-looking websites and testimonials that can be hard to distinguish from the real thing.
How does a pension scam work?
Scammers will usually contact people out of the blue via phone, email or text, or they may even advertise online. Sometimes they may even be introduced to you via a friend or family member, who is also unknowingly being scammed.
Scammers will make false claims to gain your trust, such as claiming that they are authorised by the Financial Conduct Authority (FCA) or that they don’t have to be FCA authorised because they aren’t providing the advice themselves.
Scammers will design attractive offers to persuade you to transfer your pension pot to them. It’s then often invested in unusual and high-risk investments, or sometimes the funds will be simply stolen outright.
How do I know if it’s a scam?
Be cautious if an individual or a company does or offers you any of the following things:
If you do suspect a scam, then you should carry out the following actions: