The taskforce is urging savers to learn how to recognise a scam, and understand the wide array of support now available in the battle against perpetrators.

“The criminals behind this illegal activity often lay a sophisticated trap complete with glossy brochures and professional websites that make them look highly credible – don’t fall for it,” said Baroness Ros Altmann, Minister for Pensions.

“Their aim is to catch you off your guard so they can steal your hard-earned savings. Scammers wreck people’s lives; it really is as plain and simple as that. If you suspect a scam, please report it to Action Fraud or contact The Pensions Advisory Service.”

The hidden nature of pension scams is such that it is difficult to calculate exactly how much money has been lost, although industry estimates suggest it could be close to £1bn.

Project Bloom, a government led task force, was set up to tackle pension fraud. A number of police raids have taken place, 15 scam websites have been suspended, and the National Crime Agency has snapped up 70 domain names to prevent them from falling into the hands of criminals.

In addition, The Pensions Regulator, which is currently investigating 9 cases of suspected pension scams, is refreshing its ongoing Scorpion campaign on Monday 27 July to help safeguard savers and support trustees, working across government and with a range of partners. The latest updates and information are available at www.pension-scams.com.

Tips for staying safe

A number of organisations have united to highlight pension scam risks, as part of Citizens’ Advice Scams Awareness Month. Together, they have compiled the following five tips for staying safe.

1. Beware anyone calling out of the blue offering a free pensions review
2. Beware companies offering early access to your money
3. Beware companies offering to help you trace lost pensions or obtain a pension statement – these services are free from the government website GOV.UK
4. Always contact The Pensions Advisory Service for free and impartial guidance to talk through your options
5. If someone promises you a rate of return that sounds too good to be true, it probably is.

Citizens Advice estimates that half of all scams reported to it are from consumers over the age of 55.

“Fraudsters aren’t just trying to tempt people’s pension pots away with offers of pension schemes; they also try to entice people to hand over their money with big investment opportunities such as property abroad and fine wines,” said Gillian Guy, chief executive of Citizens Advice.

“Think twice before responding to a cold call or an advert offering a free ‘pension review’, or high-return investment. If you think you’ve been targeted by a scammer, report them to the authorities.”

Chief Executive of The Pensions Regulator Lesley Titcomb said: “The people behind pension scams are sophisticated and well organised, and we are working hard with our partners to disrupt their activity, take legal action when necessary, and alert the public to the dangers posed by rogue schemes.”

“Our message is clear: check the facts before you make an irreversible decision. A lifetime’s savings could be lost in a moment. While we are committed to investigating scams and bringing those people behind them to justice, the chances of recovering money once it’s been handed over are slim.”

The Pensions Advisory Service chief executive Michelle Cracknell said: “Prevention will always be the best cure when it comes to keeping your pension safe from scammers and we would always recommend that you talk to us before doing anything with your pension.”

“We provide free and impartial guidance on your options and will be able to tell you how to check the credentials of the companies that you are dealing with.”

[article_related_posts]