The reality of a pension scam is devastating. Typically, a scammer approaches a victim out of the blue with a plausible pension or investment opportunity, then raid the savings victim to face retirement with limited income and little chance of rebuilding their savings.
In the midst of ongoing COVID-19 pandemic, it is feared scams remain on the increase despite a dramatic drop in reporting. Figures provided by Action Fraud show individual pension scam losses range from under £1,000 to over £500,000. But the true scale of the problem is likely far higher, since victims often won’t realise they’ve been tricked until years later, and by then the money is long gone.
The Pension Regulator (TPR) is warning that a lack of data may be hiding a very different picture. 2021 saw a rise in scam reporting, leading TPR to put the industry on high alert and encourage sign-up to its Pledge campaign to combat pension scams.
In November 2021, TPR granted new powers to pension scheme trustees to refuse a transfer if they believe that there is a risk of it being a scam.
What to watch out for
It’s not just your pension savings that scammers want. Scammers are approaching people online more than ever. Internet use is an everyday occurrence for most people, from email, to shopping to banking, and virtually everything in between. Unfortunately this means that there are people who will try to take advantage of your online activity. Here are a few common ways that can be used to hack your personal information:
Computer viruses
Also known as malware (malicious software), these programs can steal your information and spread from one device to another (PCs, tablets and smartphones) via messages or emails.
IT phone scams
In this type of scam, a fraudster will call claiming to be from your IT department, mobile phone or broadband provider, or a company that makes your devices to try to get you give away your passwords or other information, or install malware on your devices.
Fake websites
By creating a website that looks genuine, such as a bank, scammers can steal passwords and codes.
Email scams
Known as ‘phishing’, a genuine-looking email is sent in the hope that you will click the links in it that takes you to a page that will try to get your personal details.
SMS scams
Similar to email phishing, text messages claiming to be from a legitimate firm will try to get you to follow a link to get your information.
Six tips to help you stay safe online
Whether online or on the phone, criminals are always looking for new ways to trick people. If you think you are being targeted, or think you may have been the victim of a scam, you should report it straight away.
Thankfully, staying safe online is easy when you know how. We have put together the following tips to help.
- Use strong passwords. They should include a mix of letters, numbers and special characters and should be different for each site you use.
- Do not write your passwords down. A secure password manager is a far better way to keep track of your passwords. Your paper record could fall into the wrong hands.
- Keep your browsers and devices up to date. Updates keep the security of your devices up to date.
- Keep your antivirus, firewall, and any other security software up to date, too. You can set these programs to automatically update themselves.
- Check for the padlock a secure website will have a padlock icon next to their address on your web browser.
- Never click on links or open attachments from emails claiming to be from financial companies. Call the company directly if you are worried about anything you have read.
For more information on how to avoid scams and useful resources, visit fca.org.uk/scamsmart
If you think you have been a victim of fraud (or you have been targeted) report it immediately
Action Fraud will give you advice on what to do next. You can reach them on 0300 123 2040.
Find out more about Action Fraud at actionfraud.police.uk
