On 29 March 2023, the government published a new briefing paper which provides information on pension scams. In the research briefing, the government sets out eight common types of pension scams. These are:
- Pension review scams where a scammer offers a ‘free’ review of pension savings and returns, but uses the information provided to scam the victims
- Pension advice scams where a scammer offers free advice to gather information or authority to transfer a pension, or to inform another pension scam
- Pension transfer scams where an adviser recommends transferring pension funds, either to a scam or genuine scheme, against client interests in order to receive a fee or commission for carrying out the transfer
- Pension investment scam where a scammer promises unrealistically high returns on investments to persuade someone to transfer their pension into an unsuitable alternative
- Pension liberation scam where a scammer makes false promises to encourage someone to access their pension before the age of 55. This usually leaves the victim facing a large tax bill
- Hidden charges or conditions where firms or individuals involved in a pension hide unreasonable fees or terms and do not seek consent for them
- Misadventure where a fund or asset manager invests in a different way to what the saver was led to believe, exposing them to higher risks that they are unaware of and would not willingly take.
- Claims management scams where a scammer targets pension scam victims with offers to reclaim their lost money for a fee.
Pension scams are widespread
The government briefing paper also shares some worrying statistics on the prevalence of pension scams in the UK. For example:
- In 2021 the average loss to each victim of a pension scam was £75,000 {Action Fraud}
- £31 million was reported have been lost to pensions scams between 2017 and mid-2020 {Action Fraud}
- In 2020, the Police Foundation, a UK policing think tank, estimated that up to £2.5 trillion is “accessible to scammers”.
Reporting pension scams
The briefing paper provides some helpful guidance on how to report pension scams. It states that: Scams should be reported to the pension provider, the Financial Conduct Authority, and Action Fraud, the UK’s national reporting centre for fraud.
Requests to access an expert reporting tool for making multiple reports can also be made by emailing the City of London Police.
It also directs victims of pension scams to resources that can support them.
Get your money back after a pension scam
At KP Law, we help people affected by investment and pension fraud get their money back. Providing a cool head in a crisis, we remove the burden from your shoulders as we fight for justice. What’s more, because we offer no-win, no-fee funding arrangements, you benefit from expert legal support and complete peace of mind without having to worry about costs.
Our solicitors have even won cases where victims had been told that there was little to no chance of compensation.
Contact us in confidence to find out how we can help.
