Don't fall for a pensions scam

Be cautious with unsolicited contact via phone, text, or social media

- By CAMILLA FOSTER

PLANNING for retirement should give you peace of mind - but unfortunately, pension-related scams are becoming increasingly sophisticated, targeting savers of all ages and income levels.

The Financial Conduct Authority (FCA) reveals that around 800,000 people reported losing money to investments or pensions-related scams in the 12 months to May 2024.

Fraudsters often disguise themselves as trusted advisers, official institutions, or legitimate investment opportunities, making it harder than ever to tell the difference between genuine guidance and a costly trap.

Here, Anthony Wilson, solicitor and managing director at Copious Law, who has represented many victims of pension fraud, highlighted what these scams often look like and the red flags to look out for.

What are some common types of pension-related scams?

"The victims all seem to have common origins in terms of how they're actually contacted," says Anthony. "The traditional ways these scams start is usually through some sort of unsolicited call, text or social media contact.

"A lot of people are either offered a free pension review, are persuaded to transfer funds into investments or are persuaded to release tax-free cash from their pension," says Anthony.

A lot of these scams are very sophisticated

"With the sophistication of social media and algorithms, the scammers can target advertising to a very specific group of people," says Anthony. "So, you find that these people are really very, very clever at targeting the particular age groups that could be enticed into liberating their pensions."

He also adds scammers often use intermediaries to seem more legitimate.