Regulators have said ‘enough is enough’ as pension scam victims see an average of £91,000 taken by fraudsters.
How the pension scam works
Victims are usually contacted by a cold caller offering a free pension review. They may also offer a way to make high returns on pension savings.
If people accept the review and are persuaded to move their pensions, the money is then stolen outright or transferred into a high-risk pension scheme.
Common schemes offered by untrustworthy advisers include forestry schemes, storage pods, overseas property or hotel room schemes.
Many are persuaded to transfer their whole pension pot. We have worked with clients we’ve invested over £200,000 into high-risk schemes which have then failed. This leaves them with no money in retirement.
The pension scam campaign
The Financial Conduct Authority (FCA) and The Pensions Regulator will launch the awareness campaign today. The aim is to alert people mainly in their 40s, 50s and 60s of the dangers of pension fraud.
A prevention campaign will urge people to be wary of what they do with their pension pot. A report by the FCA estimates that over 100,000 people aged 55-64 could potentially have been victims of pension scams last year.
We’re currently working with over 1,500 clients who have got in touch because of mis-sold pensions.
Our thoughts
Managing Director at APJ Anthony Wilson said: “Bad advice and outright scams are a major problem in the pensions industry at the moment.
“We’re working with thousands who have already been duped into making bad pension investments, many losing their entire pension savings in the process. It’s upsetting to see how many people have suffered at the hands of untrustworthy advisers and scammers.
“The offer of a free pension review is common among our clients. We welcome efforts by regulators to raise awareness about the dangers of investing your pension after this kind of out of the blue approach.
Click here to see more about how people are tricked by scammers because it may seem familiar.
For anyone who fears they may have already lost money because of poor advice, it isn’t the end of the road. We can investigate your case with no fees. If we find evidence of mis-selling we can then fight for compensation.