Pension scam tactics emerged following the Pension Freedoms Act in 2015 because people were able to withdraw all the money from their pensions in one go. Scammers would target vulnerable pensioners as they believe they can manipulate them. Action Fraud reported a doubling of the average amount lost by pension scam victims in 2021 to £50,000 from around £23,689 in 2020, with the Pension Scams Industry Group (PSIG) estimating 40,000 people lost around £10billion to fraudsters since 2015.
On the interactive investor Youtube Channel, Becky O’Connor, head of pensions and savings, spoke to James Jones-Tinsley, technical specialist at pensions consultants Barnett Waddingham about the rise in pension scams and how Britons can avoid them.
Thousands of pensioners have fallen victim to these scams and lost their whole life savings, forcing them to struggle during retirement.
“Millions of pounds have been lost to scammers and in reality, the figures will be much larger than official statistics as people are embarrassed to admit they have been the victim,” Mr Jones-Tinsley said.
It’s the promise of higher returns that seems to be luring people in, he explained.
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He said: “The biggest scams seem to include domestic investments.
“Things like car parking spaces, typically at airports or store pods.
“This is where people rent out a building or a unit in which to store…
