In just the first six months of 2021, an estimated £2.2million was stolen from thousands of people by pension scammers. With losses from these scams averaging at £50,949 per person, here are the warning signs to look out for.
Some occupational pension scammers ask savers to transfer their entire pension pots into single member occupational schemes, and many promise savers early access to their money through a “loophole”.
Not only can this see savers draining their money into a scammers’ bank accounts but it can also mean they are hit with a high tax bill from HMRC if they end up using the ‘loophole’ to withdraw the money before they turn 55.
Any savers who believe the offer they’ve received could be a scam are advised to contact the Financial Conduct Authority before making any transfers or providing any details.
The FCA regulates firms and individuals that are legally able to provide financial services and advice.
Often scammers will pose as these types of advisers and can often have very sophisticated websites and fake certification that looks real.
As such, it’s recommended people always check with the FCA on whether the person or company they are talking to is actually authorised to carry out the services they are offering.
The FCA also regulates self-invested personal pensions, otherwise known as SIPPs, as well as personal or contract-based stakeholder pension schemes.
The Financial Services Compensation Scheme (FSCS) is also in place to protect…