Pensions minister Ros Altmann issues warning following rise in scams

Losses from pension liberation fraud climbed to £4.7m in May, according to Action Fraud, up from £1.5m in April

Simon Read
Friday 31 July 2015 22:24 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

The fraudsters are embracing pension freedom. After being offered a free pension review in a cold call, one potential victim was visited at work by a bogus independent financial adviser who offered the chance of investing in overseas property.

"He was armed with a glossy, legitimate-looking brochure, and said my money would be invested in a fund registered offshore," the potential victim said. Paperwork was then couriered to him asking him to sign an agreement to transfer his savings.

"I felt uncomfortable and decided it was too much of a risk," he said. "I feel lucky, though – on another day I could have easily signed those forms."

He was indeed lucky. He nearly lost his entire £90,000 pension pot to the scheme. Others have been less fortunate. Losses from pension liberation fraud climbed to £4.7m in May, according to Action Fraud, up from £1.5m in April.

Ros Altmann, the minister for pensions, said: "Criminals often lay a sophisticated trap with glossy brochures and professional websites to make them look credible. Don't fall for it."

If you suspect a scam, report it to Action Fraud on 0300 123 2040.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in