You are here: Home - Retirement - Retirement planning - News -

Typical pension scam loss doubles to £50k

Written by: Emma Lunn
Figures from Action Fraud show the average pension scam loss so far this year has been £50,949, compared with £23,689 in 2020.

Between January and May this year, reported pension scam losses totalled £2,241,774, although many scams go unreported. Some individual savers lost as much as £500,000.

Research from the Financial Conduct Authority (FCA) found savers are significantly more likely to be fooled by scammers’ tactics online than they would face to face. The regulator is urging pension savers to “flip the context” if they are approached online regarding their pension by suggesting they imagine the offer had been made by a stranger in a pub.

The FCA found that just 1.1% of pension holders would take advice from a stranger, but 9.95% would accept financial advice such as a “free pension review” online.

Jon Greer, head of retirement policy at Quilter, said: “Most of us are hardwired to ignore the ‘get rich quick’ schemes we hear about in the pub, and we know to take any unsolicited face-to-face financial propositions with a pinch of salt. Yet when we go online, we are often lulled into a false sense of security and our instincts can go out the window.

“The FCA’s research suggests that all too often, people incorrectly assume they can trust what they see online to be genuine. They trust that because a pension ‘opportunity’ appears on a website or a search engine that it must be the real deal. Often, however, it is a scam.

“Spotting a pension scam can be tricky and it is absolutely critical for savers to have their guard up when approached with an offer to transfer into unusual assets promising outlandish returns, or take advantage of a scheme offering early access.”

Gareth Shaw, Which? head of money, said: “Fraudsters are using increasingly sophisticated techniques to trick consumers into handing over the pension savings they have built up over decades. Search engines like Google are awash with adverts for investment schemes promising returns far greater than the paltry rates on offer from most savings accounts – and they are often designed to look just like the websites of well-known financial firms.

“Because pension scams often start on the internet, online platforms must be given legal responsibility, through the Online Safety Bill, to identify, remove and prevent fake and fraudulent content, including adverts, from appearing on their sites in the first place.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

How to get 5% interest without tying up your savings for years

You don't have to lock your money away to get an above-average return on your savings.
How to get 5% interest without tying up your savings for years

Top savings accounts now pay over 4%

Savers can now access interest rates of over 4%, following the Bank of England’s decision to increase the base...
Top savings accounts now pay over 4%

Friday 30 September: Three deadlines you can’t afford to miss

It’s the end of the month today and this date is significant for energy billpayers, anyone with notes lying ar...
Friday 30 September: Three deadlines you can’t afford to miss

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Money Tips of the Week