According to the Financial Conduct Authority (FCA) and the Pensions Regulator (TPR), the Express has reported that two-thirds of those asked would trust anyone offering them pensions advice, even if they hadn’t sought it out.
Interestingly, the findings concluded that more highly educated individuals were more likely to succumb to a scam, with a bigger focus by scammers on targeting the elderly by confusion or bullying them.
A consequence of falling for such scheming could result in the instant loss of savings, with an average of twenty-two years’ worth being lost per victim as a result. Pension advisers are now scrutinised by regulators as a result of several pension mis-selling and investment scandals over the year.
Though things have improved somewhat, naturally it is advisable that people be aware of such scams and tactics in order to reduce the chance of falling afoul of a scammer.
Watch out for warning signs
As call-barring, GDPR and other methods of being contacted unwantedly by phone have decreased the chance of a telephone scam, Aggressive sales tactics may now occur on social media, with high-pressure sales of ‘time-limited offers’ or couriers turning up on your doorstep to hand over documents to sign being two examples to be very wary of.
Third-party and unregulated sellers are also sources to be vigilant about, as well as sellers warning you that your current provider doesn’t have your personal benefit at heart.
In more shrouded methods, investments in conventional products may be the subject of a sales pitch, though such deals include huge caveats where the provider and others skim funds out of your capital. These incidents are known as ‘Fractional scamming’ or ‘skimming’.
Such tactics require targets who are unaware or left in the dark regarding the risks associated with agreeing to such deals. Always make sure to keep in mind the information that’s being withheld, as much as or more so than what you’re being presented with. As the saying goes:
“If it sounds too good to be true, it probably isn’t.”
Questions to ask yourself and points to consider
- How realistic is the offer I am being given? – Are the terms realistic? Do the returns or benefits look feasible?
- Have I heard of this company before? – Have I requested a call back? Have I contacted them first?
- Is this a cold call? – Cold calling regarding pensions is illegal in the UK and should be reported to the Information Commissioner’s Office (ICO).
- Is it a ‘free’ service? – If a company you have never heard from is offering a free pension check, this is almost certainly a scam.
- Don’t be persuaded by a friend or someone you trust – Check your sources and always make informed decisions based on your own research.
- Is the provider on the Financial Services Register? – This will tell you whether the provider is FCA authorised.
If in doubt, don’t agree to anything. If you have committed to something and believe you may have fallen for a scam, speak to your pension provider immediately. For any other doubts on how to act, contact the Pensions Advisory Service.
WHAT TO DO NEXT
If you have fallen victim to any form of pension or investment mis-selling, contact our Financial Litigation team today on 0113 200 9787, or by one of the methods on this page, for a free initial consultation. We may be able to help you recoup some of your losses based on our assessment of your circumstances.
