Following the recent ban on cold-calling by the government, and the wind up of 24 companies investigated by the Insolvency Service with regards to pensions, the Insolvency Service is warning people to be on their guard from pension scammers and negligent trustees.
The pension misuse in the 24 companies varies from pension trustees not carrying out their duties properly to convincing people to access their pensions and invest in unregulated schemes. The Insolvency Service estimates that there are over 3700 victims connected to these companies, including businesses as well as individuals, having made more than £200 million of contributions.
Pension scams are of particular concern at the moment and according to The Pensions Regulator and the Financial Conduct Authority's ScamSmart campaign, victims of pension scams last year lost an average of £91,000 each to fraudsters. Common tactics include cold-calling, free pension reviews and promise of high rates of return.
Consumer Minister Kelly Tolhurst MP said:
"Our consumer protection regime is one of the strongest in the world and we are committed to making sure people know their rights. If you are approached to make an investment from your pension, always do your homework and seek independent advice, if necessary, to help you make an informed decision.
"Government continues to work closely with the Insolvency Service who are working to clamp down on rogue companies targeting vulnerable people. If you think you might have been a victim, I'd urge you to report it to Action Fraud UK at the earliest opportunity or visit the ScamSmart website for further help."