Retirement savings are a lucrative target for scammers with figures from Action Fraud showing pension scam losses have reached a whopping £2m since the beginning of 2021.
The pandemic and the uplift in time spent online played a part in this increase, but it is predicted the cost-of-living crisis is only going to worsen the situation.
Those struggling with rising costs may be more tempted to dip into their pensions, potentially upping their risk of falling victim to a scam.
With criminals unfortunately taking advantage of the ongoing disruption and uncertainty, it’s important that retirees are being extra cautious and understand the steps they can take to protect their money.
Colin Dyer, financial planning expert at abrdn, shares his top tips to help individuals spot scams early, and safeguard the money they’ve worked so hard to save.
1. Stay vigilant
Never make rash decisions when it comes to your pension or investments, but particularly don’t feel pressured in uncertain or worrying times.
Most scammers will take the common approach of using a ‘phishing’ email to target you. These could entice you to open an email with a lure of boosting your pension or doubling the value of savings.
When these links are clicked, it can lead to malware infecting devices and can help the scammers access your personal information. Never open or reply to emails if you don’t know who they are from, and it is best practice to never click on links in emails.
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