One of the most common financial fraudulent schemes out there at the moment are pension review scams. The issue with these is that they can be difficult to identify and it is often even more difficult to establish which steps to take next if you have been a victim of a pension review scam.
Scams can come in all different shapes and sizes and from a variety of different sources, and so it is important to be vigilant in protecting yourself from the risks and learning about how they can impact you. Here we are going to teach you a bit about what pension review scams are, as well as how they operate and some general pointers when it comes to protecting yourself from them.
What Are Pension Review Scams?
A pension review is a process which is undertaken in order to establish how well an individual’s pension plan is performing, as well as attempting to discover any potential areas for improvement.
Pension review scams typically come in the form of a phone call which offers you a pension review free of charge. What happens then is that you will be advised to switch money into a pension scheme which can often be high-risk, and the companies who contact you will generally not be sufficiently licenced or authorised despite what they might try to tell you.
Alternatively, the company might try to inform you that they in fact do not need to be FCA authorised on the basis that they aren’t providing the advice themselves. In either scenario it is important not to be fooled and to take all of the necessary precautions to ensure that the person you are speaking to has the adequate qualifications to be giving you all of this information.
How Can I Spot Them?
Any advice worth receiving will not come in the form of a cold call, and there are ample other places across the internet where better quality of advice is available. Pay attention to where the advice is coming from and ask yourself whether the company who have got in contact with you have your best interests at heart.
The easiest way to avoid being drawn into a mis-sold pension review is to simply end the phone call once you have established that that is the goal of the conversation. If you are unsure whether or not the company are authorised to provide you with advice when it comes to your pension, you can check the FCA register and see if their name appears on it.
What Should I Do Next?
If you have been ill-informed by a pension review which you did not want or ask for then it may be worth assessing your options to see whether or not there is anything that can be done to make up for this. If you have already gone to the extent of moving some of your money across to a different pension scheme then some of your options include contacting the Financial Ombudsman Service to see if they can help you reclaim your money, or simply getting in touch with us personally to discuss your situation and to see if there is anything we can do to help.
The FCA (Financial Conduct Authority) have actually put together a warning list which you can access here to highlight then dangers of financial scams and how you can avoid being caught out. You can also contact us for further advice on what to do if you have been the victim of a pension review scam, and we will be happy to discuss your options with you in further detail.