Anyone can be the victim of a scam, including a pension scam, no matter how financially aware they are. The Pensions Regulator has shared the real-life story of a pension scam victim – you can watch this video where Pauline tells us what happened to her – don’t let this happen to you!

The Pensions Regulator warns that everyone should exercise extreme caution if considering a pension transfer and that they should visit the ScamSmart website. They also suggest reading their warning leaflet.

If you are called out of the blue by an individual or company promising to move your savings to a ‘safe haven’ or offering to carry out a ‘free pension review’ please hang up. Cold calling in this way is illegal.

Pension scams can be hard to spot: Scammers can be articulate with credible websites, testimonials and materials that are hard to distinguish from the real thing.

However, alarm bells should ring if you see any of the following as they may suggest a potential scam:

• offers or mentions of ‘one-off investments’;
• high pressure sales tactics - i.e. time-limited offers or using couriers who wait while you sign a document;
• upfront cash incentives;
• ‘legal loopholes’;
• ‘early access’ to release cash from your pension, especially if it’s before 55 with no mention of the tax bill that can arise;
• incredible returns on investments or high-risk investments which tend to be overseas, unregulated and with no consumer protections;
• complicated investment structures; and
• fixed-term pension investments – these often mean people who transfer do not realise something is wrong for several years.

You should also be on your guard against recovery room scams or secondary scamming, which sees fraudsters approach people who have already been scammed and offer to help them get their money back for a fee.

If you are approached by someone about your pension, here are four useful steps to think about:

1. Reject unexpected pension offers whether in person, via the post, over the phone or online through social media and direct messaging services.
2. Check who you’re dealing with before changing your pension arrangements. Check the ScamSmart website or call 0800 111 6768 to see if the firm you are dealing with is authorised by the FCA to give advice on pension transfers.
3. Don’t be rushed or pressured into making any decision about your pension.
4. Consider getting impartial information and advice – in some cases it may be a requirement to do so. You can find advisers who specialise in pensions through this MoneyHelper page.

If you are concerned about this, please let us know or speak to someone at MoneyHelper.