Pension scams

Pension scams are on the rise and the methods that scammers use are becoming more difficult to identify. They can often use credible websites or testimonials to trick you into believing that they are legitimate.

Pension scams can take many forms, and could be about:

pension transfers,
insurance policies, or
high-risk investments (for example, crypto-assets).

Anyone can be the victim of a scam, and if it happens to you, it is unlikely you will recover any money that you have lost.

You can find advice on how to protect yourself from scammers, and what to do if you suspect you are being scammed.

What are pension scammers?

Pension scammers use high pressure sales tactics and attractive offers to encourage you to transfer your pension pot, or to release funds from it.

They may try to tempt you with:

free pension reviews,
health checks,
high returns on savings,
pension loans, or
up-front cash.

Scammers can often seem friendly, professional, and knowledgeable about finances. They use these tactics so they can gain your trust and access your pension.

Even if you think you have spoken to somebody credible about a pension opportunity, you should always check that they are registered with the Financial Conduct Authority (FCA) before you make any financial decisions.

How you can protect yourself from pension scammers

It is illegal to cold call someone about pension opportunities. If someone cold calls you, then it is very likely that someone is trying to scam you. You should hang up the call and report it to the Information Commissioner’s Office.

Professional advice about pensions is never free. Be wary of anybody that offers free advice, like a pension review, as it is highly likely to be a scam.

Many pension scammers will say they are acting on behalf of FCA or Money Helper to gain your trust and make you believe they are credible.

You can find out if someone offering pension advice is authorised and registered with the FCA on their website, or by phoning 0800 111 6768.

If you are interested in making changes to your pension arrangements, you should consider getting financial advice first. Before you talk to someone about your pension arrangements, make sure they are registered with the FCA.

You can find out more about financial advice and finding an advisor on MoneyHelper’s website.

What to do if you suspect a scam

If you suspect a scam, you should report it as soon as possible. You can report a scam on Action Fraud’s website or by phoning 0300 123 1113

If you have agreed to transfer your pension, but you now think it could be a scam, you should contact your pension provider as soon as possible. They may be able to stop the transfer before it takes place.

If you have already been the victim of a scam, you could be targeted again. Your details may have been sold to another scammer so they can perform a follow-up scam. This could be separate or related to the first scam, and they may try to:

offer to get your money back, or
buy back the investment at a fee.

You should be very wary of anyone who says they can help you get your money back. You should check if they are authorised and registered with the FCA before you take further action. If they are not, you should report them to FCA or Action Fraud.

Precautions you should take when transferring your pension benefits

If you decide to transfer your pension to a scheme, you should fully research it before you move any money. Take your time to make checks and do not rush to make a decision.

You may want to speak to a financial advisor so they can talk you through your options and help you make the best decision. You can find a list of important questions to ask your financial advisor on Money Helper’s website.

You can also visit Money Helper’s website to get impartial guidance.

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