New figures reveal victims of pension fraud lost on average £91,000 each in 2017, as regulators launch a new campaign to crack down on scams.
The FCA and The Pensions Regulator are working together on an advertising campaign targeting pension savers aged between 45 and 65.
A survey commissioned by the regulators shows nearly one third (32 per cent) of pension savers in that age group do not know how to check if they are speaking with a legitimate pensions adviser or provider.
The regulators are highlighting the common tactics used by pension scammers, for example, offering a free pension review.
The regulators are also asking people who think they might have been scammed to come forward because it is understood only a minority of scams are reported.
FCA enforcement and market oversight executive director Mark Steward says: “The size of individual pension pots makes pensions savings an attractive target for fraudsters. That’s why we’re urging anyone who is thinking about transferring their pension to check who they are dealing with and only use firms authorised by the FCA.”
Pensions minister Guy Opperman adds: ““I would urge savers to always exercise caution and seek independent guidance or advice before making important financial decisions.”
Figures obtained by AJ Bell from the City of London Police show almost £400m has been lost to investment fraud since April 2016.
AJ senior analyst Tom Selby says: “While the forthcoming Government ban on pensions cold-calling should mark the start of the fightback against fraudsters, increasing awareness of the dangers of scams is necessary to enable people to protect themselves.”
The Treasury confirmed in June the implementation of a pensions cold-call ban would be delayed due to “technicalities”.