Warning signs of pension scams: find out more

Yesterday we kicked off Talk Money Week by looking at scams and the different types that exist. Today we’re looking at how to spot a pension scam and the warning signs.

Pension scams: what to look out for

• Unsolicited calls, texts, emails, or ‘doorstep’ visits could be a sign of a pension scam. The government banned cold-calling about pensions in 2019. This means no one should contact you unless you’ve asked them to.
  
• Are you being forced to make a quick decision or feeling rushed or under pressure? Scammers may also make reference to ‘time limited’ or ‘one-off’ opportunities.
  
• Claims of helping you access money in your pension before the age of 55. Scammers might refer to this as ‘pension liberation’ or ‘pension loans’. You can only access money in your pension before the age of 55 in rare circumstances.
  
• Promises of higher returns in a low-risk environment. If it sounds too good to be true, it probably is.
  
• The use of unusual, unregulated, or overseas investments. Or pressure to put all of your money into a complicated investment structure.
  
• Phrases like ‘free pension reviews’, ‘legal loopholes’, ‘government initiatives’, ‘loans’, ‘savings advance’ or ‘cashback’.
  
• Missing or unavailable contact names, addresses, or phone numbers – legitimate companies or professionals should have traceable contact details and you should be able to call them back.

These are just some of the things to look out for. Scammers can be clever and very convincing. In December 2022, four people were jailed after scamming pensioners out of £200,000 by claiming to be police officers.

For more information about scams, and the different types of scams out there, read this leaflet from Friends Against Scams.

Or visit MoneyHelper for more information about how to spot a pension scam.

❗ If you think you’ve been scammed, or spot a scam, take these three simple steps immediately:

1. Contact your pension provider.
2. Report it on the FCA Scam Smart website.
3. Report it on the Action Fraud website or by calling 0300 123 2040.