Pension scams: how to spot a scammer As technology advances, pension scams are becoming harder and harder to distinguish from genuine pension communications. Scammers are finding increasingly convincing ways to dupe members, leading to a lifetime’s worth of savings being stolen in a moment. Here are some common, telltale signs that can indicate a scam: • Phone calls, text messages or emails out of the blue about your pension. Don’t forget, cold calling about pensions was banned in 2019, which means you should never be contacted by any company about your pension unless you’ve asked them to contact you. • Pressure to make a decision quickly or within a very short timeframe. Scammers may claim that an offer is time limited, or that you cannot call them back, so a decision must be made quickly. Tactics like this are designed to fluster you into making a decision without really thinking about it. If you’re in any doubt, hang up the phone. • Lucrative offers, such as a high rate of return on your investments, cash incentives, legal loopholes or government initiatives. Remember: if something sounds too good to be true, it often is. • Strange-looking emails and suspicious telephone numbers. Often a scammer will contact you from a cloned email account or telephone number. The email or telephone number may look legitimate at a glance, but on closer inspection, you may notice spelling errors or unexpected area codes. If you’re ever unsure that a call from your pension provider is genuine, contact them using the details listed on their website, not the details provided in an email or over the phone.
Some scammers may have very convincing websites, whereas others may contact you over the phone to assure you they are genuine. Pension scam victims have an average of £75,000 stolen from them, according to the Financial Conduct Authority (FCA) and the Pensions Regulator, so it’s crucial you are absolutely certain that the contact is genuine before you proceed, especially if you’re considering transferring your pension to another arrangement. Before making any big transfer decisions, it may be worth speaking to an independent financial adviser. They will be able to review your circumstances and advise on the best course of action for your situation. MoneyHelper has a free retirement adviser directory that you can use to find a regulated and impartial adviser near you: www.moneyhelper.org.uk/en/pensions-and- retirement/taking-your-pension/find-a- retirement-adviser
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