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Pension fraud hits monthly record high of £8m

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Figures from the City of London Police show losses from pension scams hit a record high in March of £8.6m.

The Financial Times reports 24 victims reported they had lost money to pension liberation scams in scams in March. This compares with £779,000 in losses reported by 12 individuals in February.

A total of £13m in losses was reported in the year to March, compared with £19m in losses a year earlier.

But the March figures represent the highest monthly loss since May 2015, when reported fraud hit £4.9m.

Overall since pension freedoms, over £42m had been lost to pension liberation fraud.

Red Circle Financial Planning chartered financial planner Darren Cooke, who launched a petition pushing the Government into banning pensions cold calling, told the newspaper: “The rise is shocking. This is likely to be the tip of the iceberg.”

A spokesperson for the Department for Work and Pensions says: “Pension freedoms give savers a choice over how they use their hard-earned savings, but it is important people are aware of the risks of fraud.

“The Pensions Advisory Service and Pension Wise both provide free, impartial guidance to consumers so they can fully understand the options available to them.”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Simon Trenear 15th May 2017 at 9:24 am

    So what are the FCA doing about this?

  2. Truly shocking and in the same breath not surprising…….

    The government and MP’s have no faith in regulated advisers Ross Altman (I think it was) stated MP’s have “no trust” in financial advisers, the FCA themselves will not back advisers or promote the benefits of regulated advice, instead put the industry down at any given opportunity (which is why I ask ? what really was the point in the RDR), the same is with the press, and the bloke in the pub….

    I am not saying this the sole reason why so many people try to DIY and/or fall prey to scams, but it must be up there ?

    I do believe in the pension freedoms we have today, but not if the powers that be, and people who have true influence rubbish the industry to the extent a good many consumers would rather have faith in a e-mail or phone call over that of an adviser ?

    And it would be interesting to know, how many of these people have taken “guidance” walked away thinking they now know all about pensions and taken the DIY route ?

  3. I see the spokesman for the DWP is a clueless moron. What have freedoms got to do with being scammed? I truly despair.

    EWS – the FCA are fawning over their new logo. Aint no-one got time for protecting consumers.

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