FCA press release – scammers target over £2 million in pension pots in the last five months

The FCA has released a statement alerting pension holders to a rise in the number of online scammers targeting pension pots.

“A total of £2,241,774 has been reportedly lost to pension scammers since the start of 2021 (January 2021-May 2021).  Some victims of pensions scams are reluctant to report that they have been scammed or do not realise they have been scammed until years later, so the total amount lost may be much higher.

“The average loss this year was £50,949, according to complaints filed with Action Fraud. More than double last year’s average (£23,689).”

Consumers should be especially wary of the latest online scams, including free pension reviews, time-limited offers and unregulated investments promising guaranteed higher rewards.

Citing concerns about consumers misplaced confidence in being able to identify a pension scam, the FCA wants to increase awareness of high-pressure sales tactics.

“Whether these approaches are made online or at the bar, free pension reviews, time-limited offers and help to release cash from a pension are all signs of a scam. ‘Flipping the context’ by putting these signs in an everyday, offline setting makes pension scams easier to spot and avoid.”

Click here to read the press release on the FCA site

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