Beware the pensions conmen! Ministers’ alert after Mail exposé
A STARK warning over pension scams was issued by ministers last night following the Mail’s revelations about the shady trade of the personal details of millions of savers.
Earlier this year we exposed how highly sensitive information about people’s pension pots was being sold for as little as 5p and ending up in the hands of criminals and cold callers.
Yesterday, minister for pensions Baroness Altmann said the evidence was ‘absolutely horrifying’ and urged savers to be vigilant against scams.
She said: ‘The criminals behind this illegal activity often lay a sophisticated trap complete with glossy brochures and professional websites that make them look highly credible. Don’t fall for it.
‘Their aim is to catch you off your guard so they can steal your hardearned savings. Scammers wreck people’s lives; it really is as plain and simple as that. If you suspect a scam, please report it.’
Her warning came after it emerged that losses from pension scams tre- bled in the month after the Government’s pensions revolution, which gave the over-55s the freedom to cash in their pension pots.
Losses rocketed to £4.7million in May from £1.4million the previous month – just as savers took out more than £1.8billion from their pensions in April and May.
The rise seemed to confirm concerns voiced by experts after the Mail’s exposé that the reforms would leave many more savers at risk of scams. In March, we revealed some firms were selling people’s financial data without checking what it would be used for. Nick Sayer, director of one firm B2C Data, boasted he had access to the investments and pension pots of ‘a million people’ – information that would be a godsend to scammers looking to target those planning to unlock their cash.
Industry regulators and financial bodies have also spoken out to warn the public and issue advice on recognising scams.
They say common ploys include offering victims early access to their cash or promising get-rich- quick schemes, which turn out to be elaborate hoaxes.
Gillian Guy, of Citizens Advice, said: ‘Fraudsters aren’t just trying to tempt people’s pension pots away with offers of pension schemes; they also try to entice people to hand over their money with big investment opportunities such as property abroad and fine wines.
‘Think twice before responding to a cold call or an advert offering a free “pension review” or high-return investment. If you think you’ve been targeted by a scammer, report them to the authorities.’ Lesley Titcomb, chief executive of the Pensions Regulator, added: ‘Check the facts before you make an irreversible decision. A lifetime’s savings could be lost in a moment.’
One man almost handed over his entire pension pot of £90,000 after being contacted for a ‘free pension review’ last year, but avoided doing so after checking with official government services. ÷ Suspected scams can be reported to the national fraud reporting centre Action Fraud on 0300 1232040.