In the wake of changes to the rules on accessing pensions, the Financial Conduct Authority (FCA) and The Pensions Regulator (TPR) are seeking to raise awareness of pension scams, after research showed victims reported losing an average of £91,000 each last year
The two regulators have launched a new ScamSmart advertising campaign targeting pension holders aged 45-65, the group most at risk of pension scams. A YouGov poll found that almost a third (32%) of pension holders in this age group would not know how to check whether they are speaking with a legitimate pensions adviser or provider.
The FCA and TPR are calling the public’s attention to the tactics used by pensions scammers. One of the most common is to offer a ‘free pension review’. Research reveals that one in eight 45 to 65-year-olds surveyed (12%) said they would trust an offer of a ‘free pension review’ from someone claiming to be a pension advisor.
It is believed that only a minority of pension scams are ever reported. The FCA and TPR are urging anyone who believes they may have been targeted to come forward.
Mark Steward, executive director of enforcement and market oversight at the FCA, said: ‘The size of individual pension pots makes pensions savings an attractive target for fraudsters. That’s why we’re urging anyone who is thinking about transferring their pension to check who they are dealing with and only use firms authorised by the FCA.
‘Pension scams can cause victims significant harm – both financially and mentally. If you are ever in doubt about a pension offer, visit the ScamSmart website.’
The FCA and TPR are both urging the public to make sure they check who are they are dealing with and to be particularly wary of cold calling. They should also reject unexpected pension offers whether made online, on social media or over the phone, resist being rushed or pressured into making a decision about their pension, and consider getting impartial information and advice.
The joint advertising campaign shows the contrast between the impact on the victims of pension scams and the lifestyles enjoyed at their expense by the criminals. Using TV, radio and social media adverts, it urges anyone who is contacted about their pension to visit ScamSmart before they transfer any funds.
The Treasury intends to lay regulations to ban pension cold calling in the autumn.
The FCA/TPR ad warning against pension scammers is here
Report by Pat Sweet
