pension scams

Protecting Yourself Against Pension Scams



Posted on: 11th September 2020

Where there is money to be had there is always someone devising a way to take it. It is a sad truth but the easiest way to make money is to steal it and among the many ways to steal it is to lure the unexpecting money holder into a false security, financial activities such as this are known as pension scams.

Over the last few years there have been increasing numbers of opportunists scamming and defrauding the vulnerable and unwitting individuals’ pensions into investments that are non-existent and taking every penny possible.

It’s a horrible experience to lose everything to criminals posing as a person looking after your best interests. So in order to best protect yourself there are steps you can take in order to ensure that your pensions are safe.

First of all, if you are contacted by a cold caller regarding investment opportunities then you should just hang up straight away. That is the easiest form of protecting yourself and cuts the problem off at the head. However, you may have already fallen victim to the charms of the individual in question and got a dialogue going, so if this is you then you need to continue reading.

These people are trained to lure you into a false sense of security and the slightly older and more lonesome victims can gleam a sense of comfort from them. This is how they prey on people’s good nature. Among the biggest signs of a dodgy investment proposition is their seemingly added pressure to invest quickly. They will usually explain that it is for a limited period or that you stand to lose more money due to its quickly escalating nature and interest. I’m sure they will have done everything to make it sound that the returns on the investment will be more than you could even think it could be.

It’s not. The truth of the matter is that there are no guaranteed high returns on what they class as a safe investment. This is the classic lure or ‘reel them in’ tactic.

If you have not already, you need to check whether the firm that contacted you is authorised by the FCA. You can check the FCA Financial Services Register online or call the FCA Consumer helpline on 0800 111 6788 to get a full profile. There is also an FCA warning list that will inform you if said company has a habit of offering investment opportunities without authorisation. Discovering their name on the list pretty much tells you all you need to know.

It’s a huge risk moving ahead with them at that point as you will find yourself with no cover through the Financial Services Compensation Scheme if it does go wrong for you and you will be left with the realization that your money will not be coming back.

If you have already provided financial details to this unauthorised firm then you must contact your bank immediately to block any money transfers and change details straight away. The same with your pension provider who may be able to stop the transfer in time. If you have a bad gut feeling then it’s enough to make you put a halt on things straight away.

Before investing or changing pension arrangements, be sure to speak with independent financial advisors Cheshire for safety and security over your pensions and future and to protect yourself against pension scams.