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Pension scam victims lose average of £91,000 each

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.

Pension scam ruling puts focus back on scheme duties

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”.

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. And of course what the article neglects to say is that a large proportion of these frauds have been facilitated by wilfully blind Sipp providers who have totally ignored regulations to accommodate criminal activity in return for easy fees. These Sipp operators are complicit with these frauds and should face personal prosecution.

  2. So the way to stop this is …… surveys, advertising, and lip service !

    The FCA’s solution, advertising and checking (their out of date register)

    Both costing millions to sort out ! and both easy to work around with a clever telephone script and easily forged bit of paper !

    I think Mark Stewart needs to stick to the job in hand….. making so damn difficult for real and good advisers doing their job…. pick up your bonuses every year, and working on your exit strategy from the regulator into a nice directors position with one of the big auditors, bank or investment house !!!

    I am surprised any of you lot can stand straight with all the back slapping ?

  3. The “technicalities” bedevilling any cold calling ban are simply that it’ll be all but unenforceable.

    1. There’s nothing that can be done to stop cold calls from overseas call centres.

    2. UK call centres will route their calls via an offshore location.

    3. There’s plenty of anti-tracing software even for onshore call centres.

    The whole idea is futile, a complete waste of time and money.

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