Could you spot a pension scam?

If you got a phone call about pension opportunities or reviews, would you accept what’s being offered or smell a rat?

Well, if you're in the first group, you might be at a higher risk of being scammed.

A new study by Standard Life has found that nearly two-thirds (62%) of people are confident they could spot a pension scam.

But in many cases, this confidence is misplaced.

For example, three in five (60%) didn’t know that pension providers or advisers aren’t legally allowed to cold call people about pension opportunities or reviews.

Meanwhile, two in five (40%) either believed you can withdraw money from your pension at any age or didn’t know.

Don’t fall for appearances

Scammers are using ever more sophisticated methods to target innocent people, such as setting up convincing looking websites and imitating real and reputable firms.

But worryingly, a fifth (20%) believe a professional looking site and positive online reviews are reliable signs that a pension opportunity is genuine.

Meanwhile, one in seven (14%) said they believe adverts on professional or social networking sites mean a firm can be trusted and can act in their best interests.

How to stay safe

Pension scams can be convincing, but there are a few simple steps you can take to protect yourself.

Carry out independent checks

Nearly one in ten (8%) don’t take any independent steps to verify if a pension opportunity is genuine before engaging with it.

So if you get that call or email, don’t rely on the information you’ve been given.

Check the firm’s details yourself using official sources and if in doubt, contact them through publicly listed phone numbers or email addresses.

They’ll be able to tell you whether or not they’ve tried to reach you.

Be wary if you feel rushed

If you believe you’re being put under pressure to make a quick decision, that’s a warning sign that something’s not right.

A genuine, legitimate company would never rush you and make you feel you’ll miss out if you don’t act immediately.

FCA authorisation isn't a guarantee

Being authorised by the Financial Conduct Authority (FCA) doesn't automatically mean every investment or pension opportunity is safe.

But nearly three in four (73%) either believe that if a company appears on the FCA Register, any investment it offers is guaranteed to be safe, or aren’t sure.

The FCA Register is a useful tool for checking if a firm is authorised to provide regulated financial services, but it shouldn't be your only check. 

Fraudsters may be impersonating authorised firms or use cloned details to appear legitimate.

That’s why it’s so important to verify that you're dealing with the genuine business before making any decisions.

How to report a scam

If you spot a scam or believe you’ve been defrauded, report it to Report Fraud at www.reportfraud.police.uk or by calling 0300 123 2040.

If you get a scam email, forward them to [email protected], and if you received a dodgy text, forward it to 7726.

What else can I do if I’ve been scammed?

If you believe you have fallen victim to a scam:

• contact your bank or card provider immediately and explain what has happened
• change any passwords that may have been compromised
• monitor your accounts for suspicious activity
• run a security scan on your device and ensure your software is up to date

The sooner you act, the better your chances of limiting any financial loss and protecting your personal information.

Check out our guide on how to outsmart online scammers for more tips to help you stay safe.