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How To Protect Yourself Against Pension Scams

Elechi Emekobum By Elechi Emekobum 6 Min Read

To say pension scams are on the rise is not an overstatement. Nowadays, every pension saver is a target but how do you protect yourself against pension scams?

Pension scams come in different forms and they are usually presented in unsuspecting manners. So, if proper care is not taken, you could be their next victim.

Anyone, even the experienced pension savers, can fall a victim to these scammers. This is why protecting yourself against any kind of scams and fraud is essential.

What’s pension scams?

Penson scams are so rampant nowadays and you may become a victim if you are not careful enough. It usually occurs when someone tries to persuade you to invest your entire pension savings in dubious investment opportunities.

In this, scammers contact unsuspecting pension savers in order to sell fake investment opportunities to them. The fraudsters will make attractive offers and some unbelievable promises they have no intention of keeping.

They persuade pension savers to invest their money in unusual high-risk investment scams. Such investments include renewable energy bonds, forestry, parking, storage units, overseas property, and hotels.

Early pension release is a big scam. Therefore, be wary of any scheme offering to help release money from your pension before you’re 55. You may never see your money again, and get hit with a hefty tax bill.

They make the scams look legitimate

Some scammers will go to any length to convince you. They have compelling websites and other online presence to legitimize their fake company. This is why it’s essential to check with the FCA in order to ensure they’re registered.

Like I mentioned before, there are different types of pension scams. However, the thing is that they can all lead to you losing a lifetime’s worth of savings if you are not careful.

 

Pension scams are common nowadays and scammers have gimmicky means to attract potential victims. As a matter of fact, pension savers are vulnerable and this is why scammers are targeting them with bogus investment opportunities.

How to spot investment scams

Fraudsters are everywhere on the internet including Facebook, Instagram, and Twitter. Predators are using these social media platforms to lure people into all kind of dubious investment opportunities.

How To Protect Yourself Against Pension Scams

Investment scams and frauds are usually designed to look like genuine investments. This is how the scammers can convince their victims to invest in their dubious investments.

This is why it’s usually difficult for victims to spot the scams. These kinds of scams are getting harder to spot nowadays because people are desperate to make money. However, below are some telltale signs to help protect your hard-earned money.

  • Unexpected contact: Scammers usually contact their potential victims by telephone, email, and text message offering an investment opportunity.
  • No callback: In most cases, scammers often want to be the ones making all the calls. They’ll never give you a chance to be able to contact them. So, beware of a ‘company’ that won’t allow you to call back.
  • Quick decisions: You feel pressured into making a quick decision, for example, if the caller uses such marketing phrases as the offer is “only available right now” or “don’t miss out”.
  • No physical address: The only contact you are given is a mobile phone number or a Post Office Box address.
  • Unbelievable offers: Beware if the opportunity seems too good to be true or offers high returns for a low risk.

You should always report scams

If you have been scammed or you are suspecting a scam, it’s important you report it to the right authority. You should report fraud and cybercrime that has already happened to Action Fraud if you’re in England, Northern Ireland, or Wales.

Call Police Scotland on 101 or Advice Direct Scotland on 0808 164 6400to report scams. Reporting scams will allow authorities to investigate and prosecute scammers.

It also lets law and policymakers get a clearer picture of the effect that scams have on pensions. You should always report any suspected scam to the authority.

Reporting potential scams to organisations like Action Fraud (in Scotland: Police Scotland or Advice Direct Scotland) or the Financial Conduct Authority can help protect others. You can also report any intelligence or concerns by contacting Action Fraud.

 

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Elechi Emekobum is into health and social care. She loves blogging, content writing, social media, branding, travelling, gadgets, and health products. Check out her other articles on Hotelsrepublic.com and follow her on Twitter.
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