Unfortunately, pension scams are still on the rise. In the UK, almost £19 million of suspected pension freedom fraud was reported between April 2015 and March 2016 – that’s double the amount that was reported the previous year*.
Scammers often take advantage of members’ statutory right to transfer their benefits out of DB Schemes, for example by persuading members to transfer their benefits into illegitimate arrangements with a promise of immediate cash. Many people have lost some or all of their savings by doing so.
Techniques used by scammers include cold calling, promises of high returns or tax-free gains and offers of overseas investment. They can be very convincing, with professional-looking websites and enticing offers, but remember that legitimate organisations would never contact you out of the blue or ask for your personal or bank details over the phone, so it’s important to be vigilant.
You should take independent financial advice if you are thinking of transferring your benefits.
*Please note that this is a national figure, we are not aware of fraudulent activity having impacted members of the Scheme.