Gen up to protect yourself from pension scams

With pension scam losses totalling millions each year, good news came in November, when new regulations came into force to protect pension savers and stop suspicious scam transfers.

From 30 November 2021, pension trustees and scheme managers received new powers to intervene. Previously pension providers were not allowed to refuse to carry out a transfer where the saver has the right to do so, even if they were suspicious, but the new regulations will enable trustees to prevent a transfer request if they see evidence of ‘red flags.’

Knowledge is power

The Financial Conduct Authority (FCA) has reaffirmed its commitment to tackling scams in order to ensure the long-term health of the pensions market. In a speech to delegates at the Pensions and Lifetime Savings Association, the FCA’s Executive Director of Markets Sarah Pritchard said steps have been taken to stop scams reaching consumers, “We want people to be better protected from the risks of scams and know how to protect themselves against them. Our ScamSmart campaign… gives knowledge and tools to help people protect themselves from scams.”

On-the-ball

We can all take simple steps to protect ourselves against potential scams, including:

• Double check who you’re dealing with
• Don’t give out personal information you wouldn’t share with a stranger
• Don’t feel pressurised into making quick decisions.