You’ve worked all your life to build up your pension pot with dreams of a perfect retirement. Now imagine losing it all. Pension fraudsters are just waiting for you to slip up so they can empty your retirement savings and disappear

The financial watchdog has revealed common tactics fraudsters use to con victims out of their pensions. The alert comes as more people withdraw pension savings due to the cost-of-living crisis. Here’s what you need to watch out for

 The Financial Conduct Authority (FCA) disclosed the list as part of a ScamSmart campaign to help people avoid pension scams. The FCA says that “just as with magic tricks,” scammers distract victims with the promise of higher returns, “preying on money concerns, and building up trust”

The most common pension scams

Cold calling

Pension cold calls were banned in January 2019, so you shouldn’t expect anyone to interrupt your day to ask about your retirement. Don’t engage with cold callers and risk a conversation as they’ll be looking for even small bits of information they can use in future –hang up

If you get a call from someone claiming to be your pension provider, pension scheme or the government, tell them you’ll call them back. But don’t accept any phone numbers they offer you; find them yourself on the relevant website

Free pension reviews

Scammers may offer a ‘free’ review of your pension savings, promising better returns. They’ll make up problems with your current pension and suggest transferring to a different scheme – often overseas. In reality, it’s a fake pension transfer service that they’ll use to get access to your pension and steal your money

The only way to get a proper review of your pension is to consult a regulated financial adviser. If you don’t want to pay for financial advice, you must do your own research instead. Pension Wise from MoneyHelper is a free, government-backed service for the over 50s. It offers straightforward and impartial guidance on your retirement options.

Offers to unlock cash

Scammers often lie about helping you access your pension money earlier. The normal age to access up to 25% of your pension tax-free is 55, rising to 57 from 6 April 2028 – unless you have a protected pension age or are in poor health. Taking money from your pension before then will lead to penalties from HMRC. Scammers who promise to transfer it so you can get access will steal your money

Before you make any big decisions about taking your pension before retirement age, NMTBP recommends that you look at guidance from Pension Wise or speak to a financial adviser

Pressure selling

Genuine pension providers and financial advisers are banned from pressure-selling products or dangling time-based offers. If you’re being rushed to decide, take a moment and back off. You’re probably dealing with a fraudster

Unbelievable investments

Be wary of pension investments that promise significant returns with no risk. These can be pitched as things like overseas investments, new technology or property. All investments carry risk, and if something sounds too good to be true, it probably is. Get-rich-quick schemes rarely work out for anyone but the scammer

If you want to invest and you’re bemused by your choices, make an appointment with a regulated financial adviser. You can find one on Unbiased – there may be a charge for their advice

What should I do if I’m being targeted for a pension scam?

Taking action immediately is essential if you think scammers are after your pension. Firstly, get in contact with your pension provider. Only use phone numbers or email addresses that you can confirm on their website or letters you’ve received. Double-check the numbers and make sure they match before calling. Let them know what’s been happening so they can secure your pension and prevent any withdrawals. You should also take the following steps

Stop communicating

Hang up the phone if you’re called and don’t open any suspicious emails or click on links, just delete them. Don’t give out any more personal information like your bank details, NI number or pension details

Report the scam

Contact Action Fraud and the Financial Conduct Authority (FCA). Give them as much information as possible about the scam – like any contact details you were given and precisely what they wanted you to do

Warn others and get advice

Spread the word to family and friends and your social networks, so other people don’t fall victim to scams themselves. It may also be worth speaking to a financial adviser, who can support you with ways to make your accounts more secure

What if I’ve already been scammed?

If you’ve been the victim of a scam and have taken the steps above, you should seek legal advice. Then you’ll be able to understand your options and whether there’s any chance to get some or all of your money back

As you’ll be at high risk of further identity theft, you should change all your online passwords and security questions for accounts like online banking. It’s also worth placing a fraud alert on your credit report. Cifas, the UK’s fraud prevention service, can place a protective registration warning on it. This will tell lenders your personal information is at risk of being used fraudulently

Tips to reduce your chance of being scammed

Firstly, don’t reply to cold calls or texts. Think about using a home phone that allows you to block calls from numbers other than a list of trusted ones. You can also do this in the settings on your mobile phone. Don’t answer calls from numbers you don’t recognise. Genuine callers will leave a voicemail; you can always add them to your trusted caller list if they are authentic

The Financial Conduct Authority offers more guidance and tips on avoiding being caught by scammers. Learn more about their ScamSmart initiative here