Be on your guard, pension savers warned

interactive investor comments on FCA pension scams research.

Commenting on new research on pension scams published today by the Financial Conduct Authority (FCA), Myron Jobson, Personal Finance Campaigner, interactive investor, says: “Tackling the scourge of financial scams is a bit like fighting the fabled Lernaean Hydra: if you cut off one hydra head, two more would grow back.

“Unscrupulous individuals have become increasingly canny in approaching people at their most vulnerable moments of their lives. Our own research found that while financial scams tend to be indiscriminate in their targeting, the risks seem to increase with age.

“Falling victim to a pension scam can be devastating and result in losses that could completely scupper even the most intricately designed retirement plan. Consumers should adopt a zero-trust approach to unsolicited communication regarding their pension and broader finances as standard.

“It is important to be on your guard. As the FCA research shows, we often overestimate our ability to spot a financial scam when, in reality, even those who consider themselves financially savvy aren’t immune to increasingly sophisticated scams.

“Anything purporting a guaranteed return is probably a guaranteed way of losing money. Have a look at the FCA’s ScamSmart website to see if the offer is a known scam. You should only deal with financial services firms that have been authorised by the City watchdog.”