Pensioners at risk from scammers

Fraudulent pension schemes, employer impersonation and fake financial advice are some of the tactics used to defraud pensioners, according to Citizens Advice.

The report consolidates 150 different cases of pensioners being convinced to give up some or all of their pension pot, and identifies the 5 most common scams being used:

1. Moving savings

Pensioners are charged high fees for transferring their pension into a fraudulent scheme. Sometimes the money is moved without their permission.

2. Fake investments

Fraudsters tell pensioners that they can make good returns by making expensive investments.

3. Fraudulent advice and support

Some people have been offered 'free' advice which ends up costing them money and their personal details.

4. Fake services

Scammers offer a paid-for service which is either not delivered or is not in the best interest of the consumer.

5. Obtaining personal information

Pensioners have been tricked to hand over personal information such as their bank account details and national insurance number after being contacted by email or phone. These are known as 'phishing' scams.

 

Quote from Nigel Holland from Holland & Co Chartered Accountants:

“Older people are an easy target for scammers and there is more that pensioners and the Government can do to stop this. Age UK is urging the government to widen their crackdown on this kind of fraud. I agree that there should be a National Scams Task Force set up to help combat these problems.

53% of over – 65s think they have been targeted by scammers according to Age UK. There is so much fraud which exists because of the change the pensions rules and everyone should be vigilant.”