Being aware

Pension scams are still at large

Being aware

On Tuesday 14th August, the BBC reported that pension scam victims lose an average of £91,000 as fraudsters see the potential for looting savings pots.

Portafina’s Managing Director, Jamie Smith-Thompson comments on how awareness is key to spot a pension scam before it’s too late.

“It’s great to hear that the regulator is highlighting these dangerous pension scams. However, we would love to see them do more and actually shut these companies down. Firms offering scams operate in plain sight within the financial industry and often sound very convincing. Some even have customer reviews, yet it’s very important to look closely and always check the FCA register to see if a financial adviser is real and regulated. If they do not display an FCA number, they are not regulated, and you are not protected.

“Awareness is key when it comes to pension scams and if you are contacted by a company offering financial advice or services, but they are not on the FCA’s register, you should avoid them at all costs. Being aware of what scammers will say to you to get to your money is also extremely important and you should never trust a company that cold calls you and tries to talk you into something.

“It’s also worth bearing in mind that there are many companies out there who will review your pension for you without charging upfront. We adopt this approach because we think upfront fees can exclude some people from a service that should be available for everyone.

 “The simple fact is, proper financial advice is really important, especially for something as life-changing as a pension. So, make sure that any financial company or adviser that you come into contact with is authorised and regulated by the FCA.”

If you think a company is offering scam investments, you can check the FCA’s ScamSmart warning list to see if the investment is already listed. You can also report any company you think is a scan to Action Fraud by calling 0300 123 2040.

For further information about scam awareness, please visit our FAQ page – How to identify scammers from legitimate financial advisers.

Call 0800 304 7288 for a friendly chat about your pension

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The details provided in this article are for general information only and are in no way deemed to be financial advice. All of the material is correct as of the publication date, but could be out-of-date by the time you read the article. For our latest information and news, please see our articles section here.

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