HOW TO SPOT A PENSION CON ARTIST

WHEN it comes to investments, the phrase ‘if it sounds too good to be true, it probably is’ is one you should remember.

Fraudsters have long preyed on savers looking to boost returns and the number of scams has only increased since the pension freedoms were introduced

Police data shows some £43 million of people’s retirement savings has been lost to scams since April 2015.

In some instances savers wind up with a huge tax bill for taking out money too soon or investing it in the wrong way. At worst, people have lost all their life savings.

Common scams to watch out for include investing in property that has not yet been built or in swathes of land or forests overseas that promise bumper returns. In other instances, scams will focus on niche or fashionable assets such as graphene, carbon credits or rare earth metals.

Investors should always be wary of any contact out of the blue — whether by phone, email or post — or where you are being pressured to make a fast decision.

Never give out any of your financial details to anyone you don’t know and always take time to consider any investment decision. It’s important to do your own research before you invest in anything, check the firm is registered with Companies House and that the investment scheme is regulated by the Financial Conduct Authority.

If you think you’ve been scammed or that someone has tried to scam you, report it to Action Fraud on 0300 123 2040.