Those
approaching retirement are being urged to be aware of a rise in pension scams,
as criminals seek new ways to defraud pensioners.
Savers have
been urged to be aware of a rise in pension scams, as criminals seek new ways to
defraud pensioners. A report produced by Citizens Advice looked at 150
cases where pensioners had fallen victim to fraudsters. The report identified
common types of scams which include:
•
encouraging pensioners to move their savings
into a ‘new’ pension
•
fake investment opportunities and
•
offering apparently ‘free advice’ and support
which actually costs money.
In some
cases pensioners are charged a fee for a service that isn’t required, while
others are encouraged to part with personal information and bank details,
either by email or phone.
Gillian Guy,
Chief Executive of Citizens Advice said:
'Scammers see pensioners as a prime
target….‘There are many people looking to benefit from the new pension rules,
including scammers. Fraudsters can ruin people’s retirement plans by taking a
portion or all of a victim’s pension pots.’
The Pensions
Regulator (TPR) has recently launched a campaign to alert people to the danger
posed by fraudsters.
From 6 April
2015 individuals have more flexibility as to how they use their pension pot,
including the option to choose to take all their savings as a cash lump sum.
TPR has warned that scammers are exploiting this change by enticing those about
to retire with promises of ‘one-off investments‘ or ‘pension loans’ or
‘upfront cash’, most of which are bogus.
Individuals
who believe they are being targeted by a pension scam should contact the
Pensions Advisory Service on 0300 123 1047. The Financial Conduct Authority’s
website also has a list of known scams. Visit scamsmart.fca.org.uk.
Internet links: Citizens Advice publications Press release
For more
information please do not hesitate to contact Cliff Pocock at Ward Williams
Financial Services Ltd on 01932 830664 or by email on wwfs@wardwilliams.co.uk.
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