Is Your Pension Safe From Scammers?

Online fraudsters have found a plethora of ways to trick people into giving their pension away

- Andy Webb

The average amount of money stolen from pensions by fraudsters in 2021 is £50,949—more than double what they took last year.

That’s according to the Action Fraud, which found individual losses ranged between just under £1,000 up to £500,000.

With scammers increasingly sophisticated in their approach, it’s important to keep your eyes open.

Warning signs to watch out for

The regulator Financial Conduct Authority (FCA) says there are some clear signs that you’ve been contacted by scammers.

First up, anyone cold calling about pensions will not be legitimate. In fact, it’s been illegal since 2019. So, avoid anything like this straight off the bat. And treat with caution unsolicited letters and emails or contact via social media.

The same goes for anyone offering a free pension review, something that’s increasingly common in online advertising. Even though most people would ignore a stranger offering to do this, almost 10% would accept this review when contacted out of the blue online. Although some approaches may be genuine, this also can be a scammer’s first step to stealing your money.