Find out how pension scams work, how to avoid them and what to do if you suspect a scam
Scammers can be articulate and financially knowledgeable, with credible websites, testimonials and materials that are hard to distinguish from the real thing.
Report to the Financial Conduct
Authority (FCA)
by contacting their Consumer Helpline
on 0800 111 6768 or using the
reporting form at www.fca.org.uk
Report to Action Fraud
on 0300 123 2040 or at
www.actionfraud.police.uk
If you’re in the middle of a transfer
contact your provider immediately and
then get in touch with The Money and Pensions Service (MaPS) at
https://maps.org.uk/en
Contact www.fca.org.uk/scamsmart
If you’re contacted out of the blue about your pension, chances are it’s high risk or a scam.
Be wary of free pension review offers. A free offer out of the blue from a company you have not dealt with before is probably a scam. According to Financial Lives, research shows that 95% of unexpected pension offers are rejected.
Check the Financial Services Register to make sure that anyone offering you advice or other financial services is FCA-authorised.
If you don’t use an FCA-authorised firm, you also won’t have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme. So you’re unlikely to get your money back if things go wrong. If the firm is on the FCA Register, you should call the Consumer Helpline on 0800 111 6768 to check the firm is permitted to give pension advice.
Beware of fraudsters pretending to be from a firm authorised by the FCA, as it could be what we call a ‘clone firm’. Use the contact details provided on the FCA Register, not the details they give you.
Take your time to make all the checks you need
Even if this means turning down an ‘amazing deal’. Be wary of promised returns that sound too good to be true and don’t be rushed or pressured into making a decision.
The Money and Pensions Service (MaPS)
Provides free independent and impartial information and guidance.
Financial advisers
It’s important you make the best decision for your own personal circumstances, so you should seriously consider using the services of a financial adviser. If you do opt for an adviser, be sure to use one that is regulated by the FCA and never take investment advice from the company that contacted you or an adviser they suggest, as this may be part of the scam
In 2023, pension scammers stole £17.7 million from UK savers, according to The Pensions Regulator.
Pauline, a 60-year-old children’s nurse, lost her entire £45,000 pension savings to fraudsters at a vulnerable point in her life. She is one of 245 victims scammed out of a total of more than £13.5 million in pension savings by being persuaded to transfer into fraudulent schemes.
In her video, Pauline shares her experience in an attempt to help others spot the warning signs and avoid getting scammed in a similar way.
If you’re thinking about how to invest your retirement savings, the Pensions Regulator would like to share their five steps to protect your pension. You can also watch their video and download a booklet…
