We hear a lot of talk in the media about pension scams, and how they are on the increase in the UK.
In fact statistics from the Financial Conduct Authority (FCA) show that over £30 million has been ‘reportedly lost to pension scammers since 2017’ according to complaints filed with Action Fraud.
So how can this happen? Pension scammers approach those with pension pots and convince them to transfer, or to release funds, by making tempting promises they have no intention of keeping. Lured by these attractive offers, people are pressured into transferring their funds into a scam scheme designed to rob them of their savings.
The FCA has a useful ScamSmart page on how to avoid such scams. They talk about common scams, and how to spot the warning signs. You will also find simple steps on how to protect yourself from such scams and what to do if you think you have been scammed! More here
Note to Members: The ScamSmart link is specifically about spotting scams relating to other Defined Contribution (DC) pension schemes you or your spouses may have earned, but of course the Armed Forces Pension Scheme has different rules. AFPS15 members can only transfer into other defined benefit schemes if they leave without receiving immediate pension benefits They cannot transfer out to defined contribution schemes. More about that here