New FCA Advert on Pension Scams
Reported widely by BBC News this morning is a new TV advert from the Financial Conduct Authority and the Pensions Regulator warning of the huge increase in Pension Scams. With a shocking average loss of £91,000 per victim, you can understand why the regulator is worried and why it still proliferates.
The full story on the BBC News website may be found here – https://www.bbc.co.uk/news/business-45170408
The report highlights how the scam works
The scam starts with an unexpected call, text, social media approach or email – offering a free pension review, or a way to make attractive returns on pension savings.
But the money may be simply stolen or transferred into a high-risk scheme completely inappropriate for retirement savings.
Many offer eye-catching returns or high-rolling investments in hotels or green energy schemes that never materialise, or instead lead to losses.
A total of 253 victims reported to Action Fraud that they had lost more than £23m to pension scammers in 2017, equating to an average loss of £91,000 per victim.
However, it is thought that only a minority of pension scams are ever reported.
Many of those losing money may only have relatively small pension pots, but it may be their entire life savings.
The ScamSmart advertising campaign, which takes in TV, radio and social media, is targeting pension holders aged 45-65 – the group judged to be most at risk of scams. The adverts aim to show the contrast between the impact on the victims and the often jet-setting lifestyles enjoyed at their expense by the criminals.
The FCA website has a tool you can use to check if an investment you’re being offered is a known scam https://www.fca.org.uk/scamsmart. Our aim at IYE is to ensure our clients do not fall victim to fraudulent investments in the first instance. We are happy to discuss and fully investigate any potential investment and provide clear, simple to follow advice on the legitimacy of a proposed investment along with the people associated with it. If you’d like to undertake full due diligence to ensure the investment you’re considering is genuine, please call us on +44 (0)20 8914 7923 or use our contact form on the IYE Global website.
