Pension scheme members in the UK continue to be targeted by pension scammers, frequently promising to unlock significant amounts of cash for you or offering ‘opportunities’ that promise high investment returns, often in overseas companies. Tempting though these offers may sound, the sad reality is that most individuals who accept them end up losing almost everything and it can be devastating.
Money and Pension Service (MaPS) figures from the financial year April 2023 to March 2024 showed that 833 people reported a total loss of over £13.6m due to financial scams.
The Trustees of the Scheme take pension scams very seriously and ensure that controls are in place to reduce the risk of members being affected by potential scams. However, another important line of defence is members themselves being aware of scams and reporting any suspicious contact that could be a scam.
Pension scams can be hard to spot. Scammers can be articulate and financially knowledgeable, with credible-looking websites, testimonials and materials that can be hard to distinguish from the real thing. Please remain vigilant if contacted about transferring your pension benefits. There is a ban on cold calling individuals about their pension savings – but scammers often find loopholes or simply break the law.
More information on scams is available from the Financial Conduct Authority’s website Pension scams | FCA
A summary of their guidance is:
The Pension Scams Action Group (PSAG) is a multi-agency taskforce of law enforcement, government and industry working together to tackle pension fraud. A summary of the core members and what the group does can be found on The Pensions Regulator’s website: Pension Scams Action Group (PSAG) | The Pensions Regulator
