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Pension fraud
All that glitters isn’t gold. Discover how to dig deeper and protect your pension with our tips.
What is pension fraud?
Pension frauds, or pension scams, essentially target pension scheme members to part with their hard-earned money. Fraudsters might ask their victims to transfer their pension pot into either non-existent or non-genuine schemes set-up to defraud people of their investments. Or, they might offer them cash incentives to gain early access to their pension benefits - referring to them as a pension loan. But these so-called opportunities often turn out to be a scam and leave the pension holder with significant losses and serious tax implications.
Spotting and avoiding pension fraud
If you're looking to make any changes to your pension arrangements, be cautious and do it the safe way. In other words, do your own research first, and seek advice from an impartial source, such as a financial adviser or accountant. It’s wise to wait until you’re armed with all the right information for your specific needs, before making any changes.
Take your time. Thoroughly check out the firm or person that you are dealing with to ensure that they are reputable and ensure that any provider or scheme you are considering is genuine.
Any cold calling or unsolicited contact by phone, email, online or post should be treated as suspicious. It’s okay to ignore these or put the phone down. Especially, as unsolicited cold calling around pensions was banned in the UK in 2019 and is often likely to be fraudulent. Cold calling is only permitted when:
- The caller is authorised by the FCA or is the trustee or manager of an occupational or personal pension scheme and
- The recipient consents to calls or has an existing relationship with the caller.
Free pension reviews, opportunities to invest your pension with large returns which seem too good to be true and upfront cash incentives cannot always be trusted, so take your time to complete research with trusted sources of information.
Beware of high-pressure sales tactics and time-limited offers, asking you to act quickly (even sending couriers to get your signature). A genuine offer will allow time to seek impartial information or advice.
These may involve several parties and complex structures. Investments are often overseas, unregulated and illiquid. These are high in risk to your pension benefits.
You could pay a very high price for this, including a massive tax bill and fees, and be left with very little in your pension pot. Also known as pension liberation fraud.
Fraudsters may claim to be authorised by the Financial Conduct Authority (FCA) or say that they don't have to be, as they’re advising you directly. They may impersonate firms or government schemes to try and convince you to transfer your pension. Remember, government schemes will never directly approach you about your pension. Check who you’re dealing with and that they’re authorised and have appropriate permissions if they are providing you with pension-related advice.
Helpful resources
Don't be rushed or pressured into action. If you have any concerns relating to your Fidelity pension, call us on 0800 3 68 68 68. If you have paid any monies directly yourself and are concerned, then contact your bank or building society immediately. If you've not acted immediately, ScamSmart can help you figure out whether a pension is genuine or not.
ScamSmart
To help you avoid pension scams and check if a firm is genuine
The Pensions Regulator
The UK regulator of workplace pension schemes
MoneyHelper
MoneyHelper provides free and impartial guidance, backed by the UK government.
Pension Wise
Offers free impartial guidance on retirement options for the over 50s who have a UK-based defined contribution pension. Pension Wise is brought to you by MoneyHelper.
Take Five
A national campaign offering advice to help consumers protect themselves against financial fraud
Action fraud
Action Fraud is the UK’s national reporting centre for fraud and cyber crime
Other threats to watch out for
Suspicious emails and phone calls
Learn how to spot a fraudulent email or phone call, so you’re not reeled in.
Investment scams
Be wise. Don’t fall prey to too-good-to-be-true, high-pressure, deadline-driven offers.
Financial abuse
Find out more about criminal influence, to ensure you’re in control of your financial purse strings.
Identity theft
Look beyond the disguise. Impersonation can be the first step to someone stealing your assets.
Deepfakes
Don’t believe everything you see or hear! Understand the tell-tale signs that could help you identify a deepfake.