Pension scams have cost many their life savings, with victims losing an average of £91,000 each.
This has left regulators with the task of educating consumers of the dangers their finances may face.
The Financial Conduct Authority (FCA) and The Pensions Regulator (TPR) have joined forces to protect the public. Their latest campaign warns people of the tactics used in pension scams.
The campaign will target people ages 45 to 65 as they are most at risk. The regulators asked people in this age group if they knew how they could check they were speaking to a legitimate pensions advisor. Alarmingly, almost a third said they did not know.
As a result, the regulators are taking action to ensure people can protect their pensions from scammers.
Consumers will be made aware of the tactics used by cold-callers and illegitimate pensions advisors. This will hopefully leave them with more knowledge for making educated decisions about their pension pot.
The joint advertising campaign shows the contrast between the impact on the victims of pension scams and the lifestyles enjoyed by the criminals at their expense. Adverts will run on TV, radio and social media.
The main tactic used by scammers is cold calling. The victim will be phoned out of the blue and offered a free pension review. The scammers appear to be legitimate and do not ask for any payment or details up front. This gives victims a false sense of security that they are genuinely being offered a free product.
The victim will then be offered too good to be true investments, which offer high returns for little to no risk. These can include forestry schemes, overseas property investments or storage pod schemes. Even the savviest of investors have fallen victim to pension scams.
Have you invested in a scheme following a free pension review? Did your advisor offer high returns for low risk? If you are concerned you have fallen victim to a pension scam, get in touch. Our team of experts will be on hand to offer support and advice.