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Pension scams are on the rise. A survey by pension provider Scottish Widows found 18% of men had been targeted at least once by scammers. The figure was lower among women, at 7%. Overall, 28% of savers are anxious about falling victim to fraud.
Scottish Widows’ research follows analysis by The Pensions Regulator (TPR), a watchdog responsible for policing parts of the pension industry. It said it had identified seven separate types of scam, variations of which are now commonly pursued by fraudsters.
7 pension scams to look out for
Investment fraud
TPR’s list of scams begins with cases of investment fraud.
This involves scammers persuading savers to transfer their pension funds into risky or false investments with the promise of high or guaranteed returns. These can include overseas property, parking garages, and storage units.
These assets are typically unregulated and likely to fail. In some cases they don’t even exist.
Pension-liberation schemes
Pension-liberation schemes are also common. Fraudsters will target people worried about the cost of living crisis who are looking to tap into cash they have previously saved in a pension.
Regulation makes it almost impossible for savers to access such cash until they reach age 55, unless they are prepared to hand over more than half the money in tax penalties.
Scammers claim to have identified loopholes to get around the rules. Not only are their claims false, but the scammers often take charges of 30%…
