"To date the regulators’ focus on consumer protection has not worked, so we’re pleased that they’re trying a different approach to raise awareness"
The regulators have launched a TV advertising campaign to raise awareness of pension scams and the most common tactics used by fraudsters.
This comes as a new poll commissioned by the regulators reveals that almost a third (32%) of pension holders aged 45 to 65 would not know how to check whether they are speaking with a legitimate pensions adviser or provider.
The FCA and TPR are calling the public’s attention to the tactics used by pensions scammers. One of the most common tactics is to offer a ‘free pension review’. Research reveals that one in eight 45 to 65-year-olds surveyed (12%) said they would trust an offer of a ‘free pension review’ from someone claiming to be a pension advisor.
Mark Steward, executive director of enforcement and market oversight at the FCA, said: “The size of individual pension pots makes pensions savings an attractive target for fraudsters. That’s why we’re urging anyone who is thinking about transferring their pension to check who they are dealing with and only use firms authorised by the FCA. Pension scams can cause victims significant harm – both financially and mentally. If you are ever in doubt about a pension offer, visit the ScamSmart website.”
Royal London's pension expert, Helen Morrissey, added: “This joint initiative by regulators on scams is most welcome, but government needs to be much more proactive. Many scams start with a cold call on the telephone yet the government continues to dither and delay over the cold-calling ban. And the main regulation on electronic communications still refers to ‘facsimile machines’ but has nothing to say about social media. Until the government takes this issue more seriously it will remain two steps behind the scammers.”
Kate Smith, head of pensions at Aegon, commented: “To date the regulators’ focus on consumer protection has not worked, so we’re pleased that they’re trying a different approach to raise awareness via TV, radio and online adverts. Pension scams continue to ruin peoples’ lives and future retirement plans, yet a ban on cold calling to help snuff out the threat of fraudsters, remains on ice. Government needs to treat this as a priority. Naturally consumers feel exposed and angry when they get taken in.
“Educating the public is a step forward, but consumers are crying out for a solution now, which can only come through a joined up approach between the regulators and the government.
“Until then people’s savings will continue to be treated as a honeypot for fraudsters, who constantly find new ways to trick them and steal their lifetime savings.”
