April 6th, 2015Pension Liberation – a new scam
There’s never any shortage of people looking for new opportunities to scam you out of your money.
The changes to the pension rules from 6 April this year are presenting some new opportunities for the crooks.
There’s different types of scam and usually they’ll start with a ‘cold call’ about:
- an investment or other business opportunity that you’ve not previously spoken to them about
- taking your pension money before you’re 55
- the ways that you can invest your pension money
You must remember that you can only take your pension money before you’re 55 in rare cases, eg if you’re very ill.
Most of these offers are fake but can appear very convincing. Their aim is simple.
Cash in your pension pot and transfer the money to them.
Once you’ve transferred your money into a scam, it’s too late.
You could lose all your pension money as well as face tax of up to 55% or huge additional fees.
How to tell if it’s a scam
Watch out if someone:
- cold calls you about your pension money
- says you can access your pension money before 55 and that they can help you with this
- encourages you to take out a large lump sum, or your whole pension pot as cash, and to let them invest it for you
- asks you to transfer your money quickly, even sending documents to you by courier – never make a rush decision about your pension money
- uses words like ‘pension liberation’, ‘loan’, ‘loophole’, ‘free pension review’ or ‘one-off investment’
- offers you an investment described as ‘unique’, ‘overseas’, ‘environmentally friendly’, ‘ethical’ or in a ‘new’ industry
How to protect yourself
You can check if the person or company contacting you is on the Financial Conduct Authority (FCA) Register or by calling the FCA on 0800 111 6768. If you call the person or company back, use the phone number for them that’s on the FCA Register.
If you’ve been targeted
If you think you’ve been the victim of a pension scam, call Action Fraud on 0300 123 1047 or use the Action Fraud online reporting tool.
