• Action Fraud has received more than 2,100 fraud reports related to COVID-19 since February, according to the Press Association
• Over £5million in losses reported to the national fraud reporting centre relating to coronavirus scams
• Pension savings remain an obvious target for scammers
Tom Selby, senior analyst at AJ Bell, comments:
“Given the profound economic and social uncertainty created by COVID-19, it was inevitable unscrupulous scammers would attempt to take advantage of the situation, leaving misery and destruction in their wake.
“Pensions remain an obvious target for fraudsters, so savers need to be alive to the common tactics these people use to pilfer their hard-earned retirement funds.
“AJ Bell’s own research found 1-in-8 pension holders under the age of 55 would consider an ‘early access’ pension offer, with younger people and men particularly vulnerable.
“Meanwhile, 1-in-10 said they would consider accepting a call from someone they don’t know about their retirement pot.
“The apparent hubris about the dangers of scams leaves the door open to fraudsters to take advantage, particularly during a period of such extreme uncertainty.
“Ultimately it is down to individual savers to get wise to scammers’ tactics and protect themselves so they don’t become the next victim.”
AJ Bell’s tips to avoid becoming a scam victim
• Watch out for investment ‘opportunities’ that appear out of the blue and sound too good to be true. Schemes offering high guaranteed returns are often at the heart of pension and investment scams.
• If you are contacted about your pension by someone you do not know, either by phone, email, text message or on social media, do not respond.
• Be extremely wary of anyone offering ‘free advice’, a ‘free pension review’ or ‘early access’ schemes. Advice is never free and you are not allowed to access your pension before age 55 unless you have serious health issues.
• If you are speaking to an adviser about your pension, make sure they are regulated and check their credentials out via the FCA register.
• Don’t be rushed or pressured into making a decision about your pension – such tactics should set off a big red warning light in your mind and are often indicative of a scam.
