Unscrupulous scammers will deploy a variety of techniques to persuade Britons to part with their money. Millions are at risk, but scammers often target people with promises of high returns or a dream retirement, which becomes particularly enticing.
Barclays shared the story of Tony, who was thinking about retirement in the next few years. However, he was not sure if he could afford this life goal.
One day, Tony received a call from out of the blue claiming to be from an investment company.
The caller introduced himself to Tony as an investment specialist, and offered to review his pension arrangement.
As Tony was not sure about the options he could have with his pension, and was worried about the affordability of retirement, he was keen to find out more.
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His mind was put at ease due to the fact he had heard the company name, which the caller claimed they were representing, in the past, and so he agreed to the review.
The supposed investment specialist informed Tony he could make his money go a lot further by investing.
He claimed he knew of a highly secure, large-return investment which could help Tony make a lot of money “very quickly”.
He claimed all Tony would need to do was withdraw money from his pension, and let the investment specialist eat with the technicalities.
The scammer lied to Tony in order to persuade him to withdraw money from his pension to put into an investment that did not exist.
The account they claimed was an investment was fake, and the scammer was then able to disappear with Tony’s hard-earned pension money.
Sadly, scams of this kind are only too common, with people losing their retirement funds and having their later life plans turned upside down.
The devastating impacts of this kind of scam could have long-lasting effects, and may mean a person has to work longer to recoup the money they have lost.
Pension scams can also promise a person they can access their money before 55, using phrases such as “liberation” and “loophole”.
However, accessing a pension before the normal minimum pension age (NMPA) could see Britons hit with a hefty tax bill on top of the money they have lost.
As a result, it is vital people keep up to date with evolving scam tactics to protect themselves.
Barclays has urged its customers to always consult a pension specialist before making changes to their pension.
Similarly, Britons can use the Financial Conduct Authority (FCA) website to check whether the person or company they are dealing with is regulated.
Finally, if an offer of easy money seems too good to be true, then it probably is.
Those who think they have been targeted in this way are urged to contact Action Fraud or Police Scotland, as well as their bank.
