Beware cunning ploys of crooks out to grab your cash
Make sure you don’t fall victim and have your life savings plundered
MORE than 4.5million UK adults have been approached by crooks trying to scam them out of cash in the past three months alone, research has revealed.
Fraudsters are calling, texting and emailing with offers of free pension advice, pension reviews, investment opportunities and tax refunds, according to insurance giant Canada Life.
That’s despite the ban on pension cold-calling which was introduced in January to put a stop to unscrupulous thieves trying to dupe people out of their lifetime’s savings.
But the ban doesn’t appear to have done much to stop fraudsters from trying their luck at luring the unsuspecting into parting with their cash.
They have simply changed tack to focus more on offering scam investment opportunities.
Rogues are targeting people still in work who are yet to access pension savings – ie, those offering the richest pickings with sums of cash amounting to hundreds of thousands of pounds.
Andrew Tully, technical director at Canada Life, said: “Falling prey to a financial scam can be devastating, not only for the person involved but also for family and friends.
“Despite the ban on pension cold-calling, these unsolicited contacts offering ‘free pension reviews’ continue. People need to be on constant alert for any signs of scams as the fraudsters continue to evolve and utilise ever more sophisticated and ingenuous ways of encouraging savers to part with their hard-earned cash.”
Figures from the National Fraud Intelligence Bureau reveal that more than 8000 investment frauds were reported in the first six months of this year, almost double the number of last year. Meanwhile, actual direct pension fraud has dropped.
Investment firm AJ Bell says this shift in focus to investment fraud raises questions about the Government decision to exclude investments from the cold-calling ban. Tom Selby, senior analyst at AJ Bell, said: “Financial fraud is mutating, with the number of victims of older-style pension liberation scams dropping in recent years.
“However, as pension-based scam reports have fallen, the number of people falling prey to scams focused on their investments has continued to rise and looks set to hit record highs in 2019. This surge in investment scams suggests politicians and regulators need to focus their attention on this area. In particular, the Government should review its decision to exclude investments from the cold-calling ban introduced for pensions.”
something sounds too good to be true, it probably is – that could be the promise of a high return on your cash from a “too good to miss” investment opportunity. Simply walk away, hang up or delete the email or text.
2. If you receive a cold call, text, email or leaflet about your pension or investments from someone you don’t know, hang up immediately or delete and ignore texts, emails or fancy brochures.
3. Someone offers to help you to access your pension savings before the age of 55. This is illegal and is only possible in very rare situations, such as if you are terminally ill. Always check with your pension provider directly. 4. Alarm bells should start ringing loudly if you are offered a deal that is limited and you are being pushed to act immediately. This is a pressure tactic – never be rushed into making a financial decision. A reputable firm would never put you under this pressure.
5. Be extremely wary of someone offering free advice or a free pension review. Advice from a genuine financial adviser is never free. You can check that an individual or firm is registered
Criminals continue to utilise ever more clever ways to rip us off
and regulated by the Financial Conduct Authority on its register at register.fca.org.uk.
6. A recommendation to take a large amount of money or your whole pension pot in a lump sum to invest elsewhere is another red flag. Seek independent advice – check the ScamSmart website fca. org.uk/scamsmart for known scams and use the tools to help identify a potential scam.
7. There can be significant tax implications if you choose to cash in your pension in one go, so check your tax position before you make any decisions. Tax calculators are available online, including at canadalife.co.uk/ tools/pension-tax-calculator.
8. Be wary if you are discouraged from seeking professional financial advice from the Pension Wise Service or the Pension Advisory Service.
9. HMRC will never contact you by email, phone or text informing you of a tax refund. So simply delete or ignore any contact made this way. It will only contact you by post. Banks and other financial organisations would never ask you to move cash to a new account because of fraudulent activity on your account. Crooks are clever and can get into the text thread from your bank and spoof its official number. Make sure you always type in the website address and don’t click on links. Call the official number on the back of your bank card rather than a number texted or emailed to you.
10. If you have any concerns, stop and don’t agree to anything. Contact Action Fraud on 0300 123 2040 or visit actionfraud.police.uk.