Martin Swain, Director
Pension scams average losses increase to over £50,000
The latest figures published by Action Fraud state the average loss from pension scams has now reached £50,949 this year. That figure has more than doubled from the typical figure of £23,689 reported last year.
Action Fraud have said that the losses in each case have ranged from less than £1,000 to as much as £500,000. Most alarmingly to UK pension holders, the real figure could be considerably higher as many scams go unreported.
Mark Steward, the Executive Director of Enforcement and Market Oversight at the Financial Conduct Authority (FCA), said:
‘Fraudsters will seek out every opportunity to exploit innocent people, no matter how much they have saved.
‘Check the status of a firm before making a financial decision about your pension by visiting the FCA register. Make sure you only get advice from a firm authorised by the FCA to provide advice, before making any changes to your pension arrangements.’
The FCA identified five common warning signs to be aware of:
- Unusual investments which tend to be unregulated and high-risk.
- Being offered guaranteed higher returns
- Being offered help to release cash from your pension, even though you are under 55
- High-pressure sales tactics – scammers may try to pressure you with ‘time-limited offers’ or send a courier to your door to wait while you sign documents
- Being offered a free pension review out of the blue
More information on how to avoid pension scams is available from the FCA at https://www.fca.org.uk/scamsmart/how-avoid-pension-scams
Looking for professional advice?
If you are worried about a pension scam or would like to discuss your options then please feel free to contact the team at 360 Accounting. We have a network of trusted affiliate companies and will be happy to point you in the direction of an expert who can provide you with their professional advice.