Adviser Spring 2020

Top tips on how to spot a scam COLD CALLERS. This is the number one method for scammers to contact their potential victims. Despite government legislation banning cold calling on pensions, and a possible £500K fine, sadly this is still going on. If you are phoned, sent a text message or even have someone call at your door offering a ‘free pension review’ and you don’t recognise the company, or their credentials aren’t watertight, then hang up, or don’t engage with them. Thankfully the FCA also report that 95% of unexpected pension offers are rejected. TOO GOOD TO BE TRUE. Use your common sense. If the investment scheme you are shown is offering ‘guaranteed’ very high returns, provided you sign up within 24 hours then walk away. Take your time to check the details of the deal, and don’t be pressurised into making a hasty decision. ASK FOR THEIR AUTHORISATION. If your financial adviser only has a mobile phone, a PO box number and no office address, alarm bells should ring. Any reputable adviser will be registered with the Financial Conduct Authority (FCA), and you can look at their register www.register.fca.org.uk to check that the firm you are dealing with is authorised. If something goes wrong, and the firm isn’t authorised by the FCA then you are unlikely to get your money back and you won’t have access to the Financial Services Compensation Scheme. BEWARE OF ‘EXCITING’ INVESTMENT OPPORTUNITIES. Scammers will offer to invest your pension in what may sound like state- of-the-art schemes, in things like biofuels, renewable energy bonds or overseas property. These may sound persuasive and exciting but these ‘amazing deals’ are rarely what they say they are. DON’T ALLOW REMOTE ACCESS. There are some horrendous accounts of people being contacted by fraudsters claiming to be from large organisations such as ‘BT Openreach’ who then get permission to install ‘security software’ on their computer or phone. THEY’RE NOT YOUR FRIEND. Scammers are becoming increasingly sophisticated in the way that they use psychological techniques to build up a rapport with their victim in order to influence their behaviour. If in doubt then contact their company independently to check, but never use the number you’ve been given by the people wanting to install the software.

Ways to avoid a scam PROTECT YOUR PERSONAL DETAILS. Financial services firms such as Scrutton Bland will have complex and secure authentication systems to protect your data and any financial transactions. Don’t give bank details over the phone in a public place or where you can be overheard. CHECK THE ACCOUNT YOU ARE PAYING INTO BEFORE TRANSFERRING CASH. There have been several instances of solicitors or estate agents email accounts being hacked, allowing the scammers to change account details, so clients then sent large sums such as house deposits straight to the criminals. LOOK AT THE WEB ADDRESS. Internet addresses starting http aren’t safe, always use ones that start https and have a padlock symbol to ensure that the page is secure. If you are being asked to click on a link then hover your mouse over the link to check the address. If it looks odd – particularly if the end of the link doesn’t seem right – then don’t go any further. GET IMPARTIAL ADVICE FROM AN AUTHORISED SOURCE. There is free information at the Government website www.pensionwise.gov.uk and The Pensions Advisory Service. If you need advice on investments and pensions then always use an authorised and independent financial adviser who will have had to undergo stringent checks to ensure the advice they give is accurate, relevant and impartial. Most people tell themselves that they are clever enough to spot the signs of a pension scammer and that this would never happen to them. However the figures that are reported suggest that this is a real problem. Victims are left devastated by what has happened to them, so make sure that you and your loved ones get good advice to protect your pension pot. https://www.scruttonbland.co.uk http://www.scruttonbland.co.uk

For more information on pensions and saving for retirement contact James Wright at hello@scruttonbland.co.uk or call 0330 058 6559 .

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