View more on these topics

Fraudsters target pension cash with investment cons

Citizens-Advice-Bureau-CAB-500x320.jpg

Pension fraudsters are increasingly using investment cons to target savers’ cash lump sums following Chancellor George Osborne’s retirement overhaul, a new survey suggests.

A Citizens Advice survey of more than 460 local Citizens Advice managers, staff, volunteers and Pension Wise guiders found 40 per cent had spoken to individuals repeatedly targeted by scammers, while 10 per cent reported contact with people who had either responded or fallen victim to fraudsters.

Half of staff said fraudsters are increasingly targeting cash lump sums with dubious investment offers.

Citizens Advice chief executive Gillian Guy says: “Opportunistic fraudsters are finding new ways to go after people’s pension pots including offering free pension reviews and promising to invest in funds that don’t necessarily exist.

“Pension and investment scams are particularly dangerous as they can destroy people’s entire pension pot, leaving them with little or no savings for retirement.

“We will be monitoring pension scams closely in order to track how they are evolving, and warn consumers what to look out for.”

City minister Harriett Baldwin adds: “We are working tirelessly to shut down illegal scams and bring scammers to justice.

“We’ve already made it illegal to imitate Pension Wise, are running scams awareness campaigns and have set up The Financial Conduct Authority which has the power to prosecute scammers.”

Citizens Advice also found fraudsters were most likely to reach out to savers by phone call, with more than 80 per cent contacted in this way.

One in three were contacted by email or post, and a further 20 per cent first approached by text message.

The survey comes just two months after the Office for National Statistics reported a 5 per cent increase in cases of pension liberation fraud.

Recommended

Citizens-Advice-Bureau-CAB-500x320.jpg
4

Citizens Advice: Don’t force advice on people selling annuities

People selling their annuities should not be forced to take advice, Citizens Advice says. The organisation – which is delivering the face-to-face Pension Wise appointments – also says the Government-backed guidance service should have its remit extended to include discussions about the secondary annuities market. This week, Money Marketing revealed how providers are torn between […]

Citizens-Advice-Bureau-CAB-500x320.jpg
50

Citizens Advice to offer pensions guidance from over 500 locations

Face-to-face Pension Wise guidance sessions will be available at over 500 locations across England and Wales, Citizens Advice says. In January the organisation announced the first 44 delivery centres and has now added an extra six, including Southwark, Brent, Waltham Forest, Chelmsford, Wigan and Kirklees. Savers at and approaching retirement will be able to use […]

1

Mortgage broker found guilty of tax and mortgage fraud

A London mortgage broker who lied about his company’s profits to evade £115,000 in corporation tax has been found guilty of tax and mortgage fraud. HM Revenue & Customs found that Asim Hussain, a director of Lifestyle Mortgages (Middlesex), had diverted company income into other bank accounts to reduce the profits of his company and […]

Pensions-savings-retirement-piggy bank
6

Pension liberation fraud cases on the rise

There were 758 cases of pension liberation fraud recorded last year, up by 5 per cent on the previous 12 months, according to official data. Figures compiled by Action Fraud and published by the Office for National Statistics show the number of cases is up from 719 in 2013. The total number of pension fraud […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Someone was happy enough to waste lord knows how much money on radio and television ad campaigns for the FSCS (all pointless really because that is a good thing which is there whether people know about it or not). Where’s the big media budget when it comes to a real threat to the public. The message should be simple enough.
    Here’s a Government website with a list of all organisations (providers, regulated advisers, registered charities, Government bodies) that you should be safe to speak to – if they aren’t on this list, just hang up on the call.

  2. Samantha Nicholls 11th August 2015 at 9:36 am

    If only it was that simple, a lot of CAB clients do not have easy access to the internet and or the confidence to use it as you suggest

Leave a comment