Your pension is often your largest and most valuable financial asset, which makes it an attractive target for scams and fraud. This page explains what pension fraud is, how to identify it and ways you can avoid it.
We’ve been notified that 3rd party organisations are contacting members of public pension schemes, such as ours, selling their help in claiming the 2015 Remedy (McCloud) benefits. Please note, you do not need to go through a third party to claim these benefits and we’ll not request a fee for providing this information.
This is a reminder to please stay vigilant. We’d encourage all members to read the information below. This offers helpful guidance on how to identify and avoid these pension scams. If you're still unsure or have any concerns, please contact us for clarification.
It's when scammers target pension scheme members and try to persuade them to transfer some or all their pension savings, by making false promises and attractive sounding offers. The money is then transferred into non-existent schemes, stolen outright or invested into unusual high-risk investments.
It's important that you’re aware of the risks of pension fraud and know how to identify it.
Pension scams can be difficult to spot. Scammers often appear articulate and financially knowledgeable with websites, testimonials and materials that look credible, and are hard to distinguish from genuine pension schemes.
Anyone can fall victim to a pension scam, so it's important to spot the warning signs:
Cold calling about pensions is illegal. Since the cold-call ban was introduced in 2019, scammers’ tactics have evolved too. They can make contact through social media by using friends or family to reach clusters of people.
Professional advice on pensions is not free. A free offer out of the blue is likely to be a scam. With guarantees of better returns on savings.
With no mention of the HMRC tax bill that can arise if you do this.
Such as ‘time limited offers’ or using couriers to send documents, who wait until they're signed.
Which tend to be overseas, unregulated and with no consumer protections. This can often mean there’s no sign of anything being wrong for several years, by which time it could be too late.
Usually with several parties involved. It may include asking you to download software so they can access your device remotely.
Many of these warning signs are considered red flags, which we use as triggers to identify potential fraud. They are part of our robust Fraud Prevention strategy and processes.
If we suspect fraud is taking place, we won’t action any transfer requests.
Whether they're made online or over the phone. If it's a cold call, hang up immediately and report it to the Information Commissioner's Office. Cold calling about pensions is illegal.
Don't be talked into something by someone you know - even if it's a friend or a family member - they could be getting scammed. Make sure to check everything yourself.
Check the Financial Services Register to ensure that anyone offering you advice is authorised by the Financial Conduct Authority (FCA), and that they're permitted to provide you with those services.
You can also check the FCA warning list to find out if there are any risks associated with a potential pension or investment opportunity. This will show you if the firm is known to be operating without FCA authorisation.
Take your time to make all the checks you need, even if it means turning down an 'amazing deal'. Be wary of promised returns that sound too good to be true, and don't be rushed or pressured into making a decision with 'time-limited' offers.
If you can, please seriously consider seeking financial advice before changing your pension arrangements. There are two ways you can do this:
Report it to the FCA. You should also contact Action Fraud. Visit ScamSmart to find out more.
If you’ve already agreed to transfer your money and now suspect a scam, you should contact your pension provider straight away.