On the go: Pension savers should reject “unexpected” pension offers made online or over the phone, regulators have urged in their latest ScamSmart campaign, as figures showed more than £30m has been lost to scammers since 2017.
The Pensions Regulator and the Financial Conduct Authority warned on Wednesday that pension pots of any size are being targeted, with the amounts lost to scams ranging from under £1,000 to up to £500,000. The average victim was a male in his 50s, the regulators said.
Complaints filed with Action Fraud showed that a total of £30,857,329 has been taken by scammers since 2017, but the regulatory bodies said the actual figure was likely to be much higher, since research revealed that savers did not know how much had accumulated in their pensions.
TPR and the FCA have made four recommendations to savers to help them protect their pension pots, including rejecting “unexpected” pension offers made online, on social media or over the phone, and checking that the company they are dealing with is authorised by the FCA before making any changes to pension arrangements.
The regulators also advised that savers should never feel rushed or pressured into making a decision about their pension, and recommended they seek impartial information and advice.
Charles Counsell, TPR’s chief executive, said: “It may seem tempting to make a change to your pension fund now, but it’s important not to rush. Before making any decision about your pension, take your time, and visit the ScamSmart website to always check who you are dealing with.”
A case study for the campaign highlighted the experience of 57-year-old Viv, who lost nearly £200,000 to pension fraud following a call from a man who she said “seemed knowledgeable and trustworthy” and who convinced her to move money from her two pension schemes.
Viv said: “Following the approach, I received a letter from one of my providers confirming that they had received the transfer request. It said the transfer would go ahead — all I needed to do was sign the letter and send it back. My other provider warned me to be careful about moving or transferring funds — but that was it.”
The regulators have partnered with football commentator Clive Tyldesley for the ScamSmart campaign after research found that only 43 per cent of football fans approaching retirement knew how much was sitting in their pension pot, while just 45 per cent were aware of how to check the legitimacy of an approach about their pension.
The new research also revealed that 65 per cent of this demographic said they would be confident in spotting a scam approach.
