Pensions scams and fraud

There are many ways that scammers persuade people to part with their pension – from promising investment opportunities to giving false information. They may call several times and could even have details of previous investments you’ve made.

How do I spot a pension scam?

There are many different ways that criminals may try to steal your pension. These scams could mean you lose some or even all of your pension, so it's important to watch out for the following:

Opportunities that sound too good to be true

Fraudsters may contact you and claim to know about loopholes that can help you get more than the usual 25% of your pension pot tax-free. Or they may offer high returns from overseas investments. They may offer you a ‘loan’, ‘saving advance’ or ‘cashback’ from your pension or talk about new or creative investments.

Offers of 'pension reviews'

Scammers may say they'll help you access your pension pot before the age of 55 in exchange for a fee – but unless you're seriously unwell or have a certain type of scheme, this isn’t possible.

Someone pressuring you to make a decision quickly

Some fraudsters may contact you out of the blue, either over the phone, text or email. Others could send paperwork to your door by courier requiring an immediate signature. But you should never feel pressured into making a decision quickly and you should always seek professional advice before doing so.

Pressure to put all your money in a single investment

In most cases, financial advisers will suggest that you spread your money across different schemes. So if you're contacted by someone who suggests that you put all of your pension pot money into a single investment, then this is probably a scam.

Untraceable companies

Legitimate companies or professionals should have traceable contact details. One sign that the person or company who's contacted you is trying to scam you is that they only have a mobile phone number or a PO box address as contact details.

Offers about investments in cryptocurrency

The Financial Conduct Authority doesn’t regulate most cryptocurrencies, so they’re not protected by the UK’s Financial Services Compensation Scheme. 

How can I avoid pension scams?

There are things that you can do to help avoid pension scams:

• Stay calm: If you get calls offering early access to your pension, don't feel rushed or pressured to respond.
• Don't commit: Always seek advice before making decisions.
• Stop the call: If you feel pressured or if the caller won't take no for an answer, end the conversation. Don't be embarrassed to put the phone down.
• Think about foreign fraud: Be wary of dealing with companies based overseas. They could be located there to avoid important regulatory requirements.
• Check adverts carefully: Don’t buy from newspaper adverts or marketing leaflets unless you’re sure they’re genuine.
• Listen to your doubts: If you think an offer sounds too good to be true, it probably is.

What should I do if I think I've been scammed?

Anyone can be scammed, and there's support available if you think you've been scammed:

• Action Fraud: Contact Action fraud to report a scam, or get more advice of scams and fraud.
• Financial Conduct Authority: Visit their website to check whether a company is authorised or to view their Warning List of unautorised companies.

There are also organisations that can help you understand more about pension scams and fraud:

• Financial Conduct Authority ScamSmart: Keep up to date with the latest investment scams and fraud.
• Pension Wise: Get independent pension advice through the Pension Wise service from MoneyHelper.

Find out more about what support is available if you've been scammed