Minister backs pensions scams warning

Pensions Minister Laura Trott has backed a call from three scam-fighting bodies warning pension scheme trustees and savers of a potential increased risk from scammers seeking to cash in on economic uncertainty. The bodies are all members of the Pension Scams Action Group. The organisations - the Pensions Regulator (TPR), Financial Conduct Authority (FCA) and the Money and Pensions Service (MAPS) – have warned that fears over the economy, including recent extreme movements in gilt yields, may leave savers more vulnerable to scammers. They fear that savers may wrongly decide there is a risk to their retirement pots and make rushed decisions about their finances, potentially leaving them exposed to crooks exploiting their fears. Pensions Minister Laura Trott said: “We’re committed to arming savers with the tools they need to spot duplicitous fraudsters, who can be articulate, appear financially knowledgeable, and offer time-limited deals – all designed to convince people to hand over their hard-earned pension savings. “As scammers’ crooked techniques evolve, so must our defences, and we continue to work closely with partners across industry, regulators and law enforcement to send scammers packing. Savers can also get on the front foot themselves – knowing the common signs of a pension scam is a great way to start.” Nicola Parish, TPR’s executive director of frontline regulation and Pension Scams Action Group spokesperson, said: “Pension schemes are not at risk of collapse. It’s vital that savers who have seen recent headlines over the economy don’t panic and rush a decision over their retirement savings.” She said that scammers exploit uncertainty and savers’ worries about their finances may make them more vulnerable to fraudsters’ common tactics. Mark Steward, FCA’s executive director of enforcement and market oversight, said: “The FCA urges anyone wanting pension advice to ensure they are dealing with an adviser authorised by the FCA.” The organisations warn that common signs of a pension scam include: being contacted out of the blue phrases like ‘pension liberation’, 'loan’, ‘loophole’, ‘savings advance’, ‘one-off investment’, ‘cashback’ guarantees of better returns help to release cash from a pension before the age of 55, with no mention of the HMRC tax bill that can arise high-pressure sales tactics – time-limited offers to get the best deal; using couriers to send documents, who wait until they’re signed unusual high-risk investments, which tend to be overseas, unregulated, with no consumer protections complicated investment structures fixed-term pension investments – which often mean people who transfer in do not realise something is wrong for several years Savers should also be on guard against recovery room scams or secondary scamming – which sees fraudsters approach people who have already been scammed and offering to help them get their money back in return for a fee. • The Pension Scams Action Group (PSAG), formerly known as Project Bloom, is a voluntary multi-agency taskforce to tackle pension scams. It co-ordinates and targets efforts to combat pension scams and fraud through education, prevention and enforcement. Its core members are The Pensions Regulator, Department for Work and Pensions, Financial Conduct Authority, Money and Pensions Service, National Economic Crime Centre and the Pension Scams Industry Group. Other partners are involved in supporting the group with communications, intelligence, operations and victim support.

Minister backs pensions scams warning

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