Raising awareness of pensions scams

There has been a fivefold increase in visits to a website by people seeking information about pension scams, following the launch of a joint campaign by regulators.

The Financial Conduct Authority’s (FCA) ScamSmart website, which allows people to check pension opportunities they have been offered and find out more about avoiding scams, is being visited every 27 seconds typically.

The FCA and the Pensions Regulator (TPR) launched the joint drive to raise awareness about pension frauds in the summer.

Victims of pension scams last year lost an average of £91,000 each to fraudsters. They reported receiving cold calls, offers of free pension reviews and promises that they would get high rates of return – all of which are key warning signs of scams.

Before the launch of the awareness drive, an average of 562 visits were being made to the ScamSmart website per day. But after the launch, an average of 3,145 visits to the website per day were recorded – around five times the number previously and the equivalent of one visit every 27 seconds.

The two regulators are urging all pension holders to be on their guard against pension scams as new research suggests that half (52%) of 45 to 65-year-olds with a pension do not think they are likely to be targeted by a pension scam.

The most common reasons given were that they believe they are too savvyto be scammed (21%) or do not think they have enough money saved in their pension (18%).

Research from the FCA estimates more than 10 million UK adults have received an unsolicited pension offer in just one year.

The FCA and TPR are part of Project Bloom, a task force working to combat pension scams. The task force includes the Department for Work & Pensions, Treasury, Serious Fraud Office, City of London Police, National Fraud Intelligence Bureau, Pensions Advisory Service and National Crime Agency.

The Treasury has laid regulations that will ban pension cold-calling early in 2019.

The FCA and TPR are urging people to be ScamSmart with their pension and always check who they are dealing with.

The regulators recommend four steps to protect yourself from pension scams:

■ 1. Reject unexpected pension offers, whether made online, on social media or over the phone.

■ 2. Check who you are dealing with before changing your pension arrangements – check the FCA register or call the FCA contact centre on 0800 111 6768 to see if the firm you are dealing with is authorised by the FCA.

■ 3. Do not be rushed or pressured into making any decision about your pension.

■ 4. Consider getting information and advice. impartial

■ If you think you have been a victim of a pension scam, report it. Visit www.fca.org.uk/scamsmart to find out more.