3 tips to protect you from pension fraud
Action Fraud, the National Fraud & Cyber Crime Reporting Centre, is reminding people that if they have been contacted out of the blue about their pension, it is probably a scam.
In 2023, there were 559 reports of pension fraud with over £17.7 million lost. The average loss per person was £46,959.
The Action Fraud campaign is warning people to protect their pension pots and investments from fraudsters, by encouraging doing research before making changes to your pension arrangements.
3 ways to protect yourself
1. Unsolicited advice
if you get a ‘cold call’ or call out of the blue about your pension, the best and safest thing to do is hang up. It is illegal and most likely a fraudster. If you get offers via email or text, these should be ignored also.
2. Get advice first
If you’re considering changing your pension arrangements, you should get financial advice first. If you want to find an adviser, make sure they’re authorised by the Financial Conduct Authority NEVER take advice from the company that contacted you, it could be part of the scam.
3. Investment opportunities
Don’t be rushed into making an investment. Remember, if an organisation was legitimate, they would never pressure you into investing on the spot.
Investment opportunities should be treated with extreme caution if there’s:
- pressure to invest (eg time-limited offers);
- downplayed risk of losing your money; or
- promised returns that sound too good to be true.
If you have been a victim
Report it: If you’re concerned about a potential scam, or you think you may have been contacted by a fraudster, report it to Action Fraud at actionfraud.police.uk or by calling 0300 123 2040. In Scotland, report it to Police Scotland on 101.
If you have made a payment: Tell your bank as soon as possible. They can help you prevent any further losses. Monitor your bank statements regularly for any unusual activity.
find out more including extra tips on the Action Fraud site.
1 November 2024