Pensions Scams

The Pensions Regulator has increased its focus on improving awareness of pension liberation, now referred to as pension scams, with a re-launch of its campaign warning members of the dangers and potential consequences of being targeted. With new flexibilities for some defined contribution scheme members available from April 2015 the Pensions Regulator is concerned that this could drive up pension scams.

Since the campaign began, tactics used by scammers have evolved. Common tactics include in-home visits from ‘introducers’, claims about legal loopholes and the use of unusual investments like overseas property, storage units or biofuels. These are all used to make targets believe they are being offered a legitimate pension transfer.

The Pensions Regulator has asked trustees to help promote awareness of pension scams to their members.

What should you do if you think you are being targeted by a pension scam?

If you think you’re being targeted by a pension scam follow these steps:

• Make sure the adviser is approved by the Financial Conduct Authority (FCA) by searching the Financial Services Register.
• Never be rushed into a decision.
• Before you sign anything, call the Pension Advisory Service on 0300 123 1047.
• Call Action Fraud on 0300 123 2040
• Don’t proceed unless you are absolutely certain your money will be safe because, once you transfer, it’s too late.

REMEMBER, if you access your pension fund through a pension scam you could lose all of your savings and still face serious tax consequences as well.