Get in touch

Hero Background Shape Hero Background Shape

New measures to protect pension savers from scammers

Hero Cta Image

The scourge of fraud covers many areas, one of which is the theft of pension savings.

It might seem inconceivable that pension funds can be stolen at all, but fraudsters use a number of strategies to persuade savers that they are genuine.

They frequently offer ‘too good to be true’ incentives such as free pension reviews, early access to pension cash, or other time-limited offers. When they respond, victims are then tricked into transferring their savings into a scam scheme and defrauded.

Where there are tell-tale signs of fraud or methods frequently used by scammers, trustees and scheme managers will be able to prevent a transfer request – giving it a ‘red flag’.

In other circumstances where fraud is suspected, an ‘amber flag’ will pause a transfer until the scheme member can prove they have taken scam specific guidance from the Money and Pensions Service (MaPS).

The Government is working closely with regulators, the Pension Scams Industry Group (PSIG) and enforcement agencies to protect pensioners and raise awareness of the dangers presented by unscrupulous fraudsters.

The new regulations come into force on Tuesday 30 November and will mean suspicious transfers can be stopped from ending up in the hands of a fraudster, as pension trustees and scheme managers get new powers to intervene.

If you are saving in a pension, beware of unsolicited ‘too good to be true’ approaches by letter, email or phone call claiming to offer free pension reviews, early access to pension cash or other offers that must be accepted within an allotted time. At some point, it will involve a request to transfer savings into another ‘scheme’, which will turn out to be a scam and all of the money will disappear.

Only ever deal with the pension provider or a suitably qualified independent adviser. Alternatively, you can go online to a government sponsored resource called Money Helper

https://www.moneyhelper.org.uk/en/pensions-and-retirement?source=tpas# or visit the Take Five to Stop Fraud website for a range of useful tips to protect you and your money. https://takefive-stopfraud.org.uk/

Read more posts

Footer Background Shape Footer Background Shape
The legal bit...

Mint FS Limited, trading as “Mint Financial Services” or “Mint FS” is an appointed representative of HL Partnership Limited, which is authorised and regulated by the Financial Conduct Authority. Mint FS Limited is registered in England and Wales with company number 11993128. Registered Office: Unit 6 The Centurion Centre, Castlegate Business Park, Salisbury, Wiltshire, SP4 6QX. The information contained in this website is subject to UK regulatory regime and is therefore intended for consumers based in the UK. Calls may be recorded for training and security purposes and to improve the quality of our services. Mint FS Limited have no control over and are not responsible for the content of other sites. Your home may be repossessed if you do not keep up mortgage payments on it. A fee is payable at outset. We charge a minimum of £395 up to a maximum of 1.5% of the loan amount.