Keep your pension safe: how to protect yourself from pension scams

Your pension is one of your most valuable assets – and unfortunately, it’s a prime target for fraudsters. Pension scams are becoming increasingly sophisticated, and even financially savvy individuals can be caught out. Here’s what you need to know to keep your retirement savings secure.

Fraudsters often promise high returns, early access to funds, or exclusive investment opportunities. In reality, these offers are designed to trick you into transferring your pension pot into schemes that are either high-risk or completely fake. 

Recent trends also show digital impersonation is on the rise, with fraudsters creating fake websites and cloned social media profiles that look like legitimate pension providers. Messaging apps such as WhatsApp are increasingly being used to make contact, often by pretending to be your scheme administrator.

Look out for these common warning signs:

• Unsolicited contact: Cold calls, unexpected emails, or social media messages about your pension are illegal and likely a scam.
• Too-good-to-be-true offers: Guaranteed returns, overseas investments, or “special loopholes” to access your pension early.
• Pressure tactics: Scammers often push you to act quickly, using phrases like ‘limited-time offer’.
• Free pension reviews: Genuine advisers don’t offer free reviews out of the blue.
• Clone firms: Fraudsters may impersonate legitimate companies. Always verify details using the FCA Financial Services Register at www.fca.org.uk/firms/financial-services-register

You can find out more information by going to the ScamSmart website – an FCA hub for information on how to avoid investment and pension scams. Visit www.fca.org.uk/scamsmart for more information.

If you suspect you’ve been targeted by a scam, act quickly. Report it to Action Fraud by calling 0300 123 2040 or visiting their website and contact the FCA’s ScamSmart service for guidance. 

Remember: if it sounds too good to be true, it probably is.