Protect Yourself from Pension Scams

…What to Watch Out For and How to Take Action

A recent EastEnders storyline featuring Jean Slater’s devastating fall as victim to a pension scam is a stark reminder of the importance of protecting ourselves from fraud. Jean’s experience, where she loses her life savings to unscrupulous “financial advisors,” reflects the harsh reality faced by many in the UK. In fact, the Pensions Regulator reported that over £17 million was lost to pension fraud in 2023, with each victim losing an average of £47,000.

Financial frauds of all kinds have become an increasingly common problem, and pension frauds are often among the worst examples because that’s where the bulk of most people’s wealth is held. We have robust security systems at Chesterton House, but we can’t prevent our clients from being approached directly and it’s essential to understand the warning signs and  how to protect yourself. Here’s a guide on what to look out for and how to stop a scam in its tracks if you find yourself in a similar situation. As always, if you receive a communication that you weren’t expecting and it raises any concerns, speak to our team for guidance.

Warning Signs of a Pension Scam

Pension scammers are often highly persuasive and use a range of tactics to gain your trust. Here’s what to watch out for:

1. Unsolicited contact
Scammers may contact you out of the blue, often by phone or email, offering “free” pension reviews or investment opportunities. If you didn’t ask for advice, be suspicious.

2. Promises of high returns
Be wary of anyone promising high returns on your pension investments, especially if it sounds too good to be true. Scammers often target vulnerable individuals by claiming they can double or triple your savings.

3. Pressure tactics
Scammers may urge you to make decisions quickly, warning of limited-time offers or threatening to take action on your pension if you don’t act fast. Take your time and seek independent advice before committing to anything.

4. Requests for personal information
Scammers often ask for sensitive details such as bank account numbers or PIN codes. A genuine financial advisor will never ask for this kind of information upfront.

How to Put a Stop to a Scam

If you think you’re dealing with a pension scam, here’s what to do:

1. Hang up or end the conversation
If you receive an unsolicited call or email, don’t engage. Firmly end the conversation and hang up if necessary. If you feel pressured during the conversation, it’s a clear sign to stop, and whilst we all feel a need to be polite to someone calling us, don’t be afraid to just put the phone down if you need to.

2. Don’t transfer money or give personal information
Never agree to transfer money or share personal details during an unsolicited conversation. Genuine financial institutions will never ask for personal information over the phone or by email.

3. Check the credentials
Before taking any financial advice, verify the credentials of the person or company contacting you. They should be registered with the Financial Conduct Authority (FCA). Use the FCA’s online register to check that they are legitimate.

4. Report the scam
If you believe you’ve been targeted, report the scam to **Action Fraud**, the UK’s national fraud and cybercrime reporting centre. This helps prevent others from falling victim to the same scam.

5. Seek professional advice
If you’re uncertain about any offer or financial advice, consult with a regulated financial advisor. It’s crucial to get a second opinion before making any decisions about your pension or investments.

Protect Yourself

The EastEnders storyline with Jean highlights the real emotional and financial toll of pension scams. While fraudsters often use sophisticated methods to gain trust, understanding the warning signs and how to act quickly can protect you from falling victim to such scams. Stay informed, take your time, and always seek independent advice to safeguard your financial future.

For more information on how to protect yourself from pension scams, visit the Pensions Regulator and Stop Scams UK.