Warning as pension fraudsters up their game
of knowledge, saying that the deal is only available to certain individuals and asking that this is kept under wraps from others, commenting that other people have invested or want to know more, and pressurising people to invest within a short period of time.
The FCA warns: “Scams are increasingly sophisticated. Fraudsters can be articulate and financially knowledgeable, with credible websites, testimonials and materials that are hard to distinguish from the real thing.
“But if it sounds too good to be true, it probably is.
“Reject unexpected offers. If you’re contacted out of the blue about an investment opportunity, chances are it’s a high risk investment or a scam.
“If you get cold-called, the safest thing to do is to hang up. If you get unexpected offers by email or text, it’s best to simply ignore them.”
Another common scam is to pretend to be a genuine firm – called a ‘clone firm’.
The FCA continues: “If you’ve given your bank account details to a firm you think may be operating a scam, tell your bank immediately. If you’ve agreed to transfer your pension and now suspect a scam, contact your pension provider straight away. They may be able to stop a transfer that hasn’t taken place yet.”
And once scammed, be extra wary.
It goes on: “If you’ve already invested in a scam, fraudsters are likely to target you again or sell your details to other criminals. The follow-up scam may be completely separate or related to the previous fraud, such as an offer to get your money back or to buy back the investment after you pay a fee.”
There are a number of other ways you can protect yourself.
Get impartial advice before investing, examine the FCA Register to see if the firm or individual you are dealing with is authorised, and check the FCA Warning List of firms to avoid. Even if a firm isn’t on the list, it may still be a scam – firms change names and details all the time.
But, beware also, many investments are unregulated.
Products not regulated by the FCA include diamonds, gold, graphene, hotels, land for development, land overseas, overseas agriculture, precious metals, storage, student accommodation, sustainable energy, UK forestry and wine.
Plus, the current big one is cryptocurrency.
Fraudulent websites claiming to offer cryptocurrency investments are using images and fabricating recommendations from prominent individuals such as Deborah Meaden from the BBC’s Dragons’ Den and Martin Lewis, founder of MoneySavingExpert.com, without their consent.
Adverts are placed on social media and attempt to suck you in.
Pauline Smith, director of Action Fraud, the national fraud and cyber-crime reporting centre, cautioned in April: “Opportunistic fraudsters are taking advantage of this market, offering investments in cryptocurrencies and doing everything they can to defraud unsuspecting victims.
“Anyone who invests in cryptocurrencies should thoroughly research Trevor Law is managing director of Eastcote Wealth Management, chartered financial planners,
based in Solihull. Email: tlaw@eastcotewealth.co.uk
The views expressed in this article should not be construed as financial advice