A recent increase in pension scams has increased the
need for extra-vigilance amongst pension savers.
Our blog in March warned of the need to be extra careful when offered a seemingly good deal and a rise in reported cases suggests that fraudulent activity has stepped up in recent months.
New pension freedoms that came into place in April 2015 have allowed pension savers to access their money earlier and easier than ever before. Financial scamsters – many of whom are not regulated by the FCA (Financial Conduct Authority) – have been exploiting the opportunity for early release of monies usually tied up until retirement.
In spite of government reassurances, the increase in pension scams since the new freedoms were put in place have confirmed our worst fears – the market is rife for exploitation and new regulations are required to protect people and their pensions.
Scammers often pose as specialist financial advisors, targeting individuals, offering a full pension review and ‘expert’ advice on how better to invest pension savings. This commonly involves a sales pitch to put some or all of your savings into a fund with the promise of high levels of return on investment.
Increasingly we have seen offers to invest some or all of a pension pot in wine, green oil or property, to name but three. These are often high-risk investments with no guarantee of success.
If you are targeted
It’s not always straightforward to know whether or not you have been targeted. The aim of a sales person is to sound completely convincing, and to make you an offer you’ll find hard to refuse. Taking a few precautions can ensure you are safe from pension liberation fraud:
- Never give ANY personal details over the phone, over email, or during a door-to-door visit regarding your pension or finances.
- If you want to know more, arrange to call back the person, and check they are registered with the Financial Conduct Authority. Use the phone number provided on the FCA website if there is one. If not, have no further dealings with the person who called you.
- Should an offer seem too good to be true, it probably is.
No one is immune to a pension scam. Scammers have become so adept at their ‘profession’ that they are more believable than ever. If you think you may have been targeted, our experienced financial mis-selling solicitors can review your case immediately.
If you believe you have received inadequate advice during a pension review and have subsequently lost out financially, TLW Solicitors are here to help on a no-win, no-fee basis.
- Always fight your corner.
- Explain anything you don't understand.
- Provide full transparency on our charges.
- Never ask for any upfront payment.
- Recover the best compensation we can.
- Keep your personal information safe.
- Respond quickly to any queries.