Pensions scams

Pension scams can be hard to spot. Scammers can be articulate and financially knowledgeable, with credible-looking websites, testimonials and materials that are hard to distinguish from the real thing.

Scammers usually contact people out of the blue via phone, email or text, or even advertise online. Or they may be introduced to you by a friend or family member who is also unknowingly being scammed.

Scammers will make false claims to gain your trust. For example:

• claiming they are authorised by the FCA or that they don’t have to be FCA authorised because they aren’t providing the advice themselves
• claiming to be acting on the behalf of the FCA or a government service such as Pension Wise

Scammers design attractive offers to persuade you to transfer your pension pot to them (or to release funds from it). It is then often invested in unusual and high-risk investments like overseas property, renewable energy bonds, forestry, storage units, or simply stolen outright.

• free pension reviews
• higher returns – guarantees they can get you better returns on your pension savings
• help to release cash from your pension even though you’re under 55 (an offer to release funds before age 55 is highly likely to be a scam)
• high-pressure sales tactics – the scammers may try to pressure you with ‘time-limited offers’ or even send a courier to your door to wait while you sign documents
• unusual investments – which tend to be unregulated and high risk, and may be difficult to sell if you need access to your money
• complicated structures where it isn’t clear where your money will end up
• arrangements where there are several parties involved (some of which may be based overseas) all taking a fee, which means that the total amount deducted from your pension is significant
• long-term pension investments – which mean it could be several years before you realise something is wrong

Secure your online pension account: The account you use to manage your pension should have a different password to all of your other accounts. Use three random words to create a strong and memorable password, and enable 2-step verification (2SV).

Ignore unsolicited calls about your pension: Cold calling about pensions is illegal and likely a sign of a scam. If you’re thinking about changing your pension arrangements, you should get financial guidance or advice beforehand.

Investment opportunities: Don’t be rushed into making an investment. Remember, legitimate organisations will never pressure you into investing on the spot.

You should treat investment opportunities with extreme caution if there’s:

• pressure to invest (eg time-limited offers)
• downplayed risk of losing your money
• promised returns that sound too good to be true

Check who you’re dealing with:

Check the Financial Services Register (www.register.fca.org.uk to make sure that anyone offering you advice or other financial services is FCA-authorised.

Report pension scams: If you’re worried about a potential pension scam or you think you may have been contacted by a fraudster, report it the Financial Conduct Authority. Call them on 0800 111 6768 or use the contact form to get in touch.

If you have made a payment: Inform your bank or pension provider as soon as possible, they can help you prevent any further losses. Monitor your bank and pension statements regularly for any unusual activity.