NS&I are already expecting a last-minute surge from savers before the deadline arrives at midnight tonight and are concerned that members of the public who are searching NS&I website may be directed to the fake one which then asks them to supply contact information.
Victims are then receiving a follow up e-mail and/or phone call from the fraudsters who are requesting evidence of identity documents and bank account details either over the phone or by sending the victims fake forms to fill out.
Almost half a billion pounds was taken from pensions as a result of liberation scams in the first half of 2014, leading to multiple arrests, liberation websites being shut down and frozen scheme assets. The pensions industry has warned that retirees will be far more exposed to losing their life savings to scams, as the ability of pension providers to prevent transfers of funds into fraudulent, too-good-to-be true investments will diminish following the pension freedoms.
The 65+ Guaranteed Growth Bonds launched in January and offer 2.8% gross/AER interest over a one-year term and 4% gross/AER interest over a three-year term.
£10 billion was made available to cover both the one and three year terms, enabling sales of the Bonds to continue for an expected period of months rather than weeks.
Within minutes of the launch, the NS&I website crashed due to an influx of visitors.
Kevin Caley, Managing Director of peer-to-peer business lender ThinCats commented on the deadline for the sale of pensioner bonds:
“Pensioners' savings have been hit hard over the last few years with the rock bottom interest rate offering pitiful returns. So, and unsurprisingly, the Government’s three year Pensioner Bond which pays a rate of 3.2%, even after basic rate tax has been deducted, proved very popular. So popular in fact that the Chancellor extended the offer’s closing date until Friday 15th May.
“Despite the offer of a 4% bond seeming appetising in such a gloomy environment for savers – people should still shop around. There are many options available to those who want their money to work harder but still limit their risk. People should seek advice and shop around when making investment decisions - especially in such a low interest rate environment but being open minded is important too and could mean better returns."
Rhydian Lewis, the CEO and founder of RateSetter, added:
“As the deadline for the Government’s lauded Pensioner Bonds passes, it begs the question of where savvy retirees who want their savings to work harder can turn to next. While sceptics have suggested Osborne’s Pensions Freedoms were nothing more than an exercise in winning grey votes, the introduction of a game-changing Lending ISA would signal a new Government keen to stay true to its promises.”
