Pension Scam Shame

June 24th, 2017

With new pension rules comes new pension scams The recent changes focusing on Pension Freedoms are no different, with lots of people are still falling foul to fraudsters.

A recent interview with The Pensions Regulator Executive Direction, Andrew Warick-Thompson, by the Professional Adviser has highlighted this, along with the of people potentially not reporting any wrong doing.

“Those aged between 50 and 59 are most at risk of falling victim to pension scams and many are ashamed to report it, according to The Pensions Regulator executive director for regulatory policy, Andrew Warwick-Thompson.

Speaking at the Retirement Planner forum – a sister title of Professional Adviser– Warwick-Thompson warned pension freedoms had made older people vulnerable to being targeted by pension fraudsters.He echoed earlier findings from the Financial Conduct Authority, which had detected a trend of investment fraud targeting the over-55’s.

“We seem to be getting the highest number of reporting of scams from people aged between 50 and 59, which is consistent with the view that freedom and choice may well inadvertently have made them targets for scams,” Warwick-Thompson said.

He said men were more likely to be scammed than women, and women were also more likely to tell their partners if they thought they had been involved in a scam.

On average, the loss from a pension scam was 50,000, although Warwick-Thompson had seen cases involving losses of more than 100,000, he said.

He added: “One of the great problems with scams and reporting how many people are involved, how much money is lost, is that the answer to the question is often we’re not really sure.

“There are a variety of reasons for that, one is that it takes a long time for people to realise they have been scammed, the other thing that we’ve come across is that they’re ashamed of the fact they’ve got suckered. So we suspect a lot of scams go unreported.”

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