Action Fraud is warning people of a pension scam whereby cold callers continue to target members of the public aged 50 to 60 years old to release and transfer their pension early.Â
Suspected firms who advertise and arrange pensions are offering investments in alternative commodities such as hotel developments or property in Cape Verde, and operate as unregulated collective investment schemes.Â
Often, the cold calling â€˜pension companiesâ€™ involved are neither regulated nor qualified to give financial advice and classify themselves as a â€˜trusteeâ€™, â€˜consultantâ€™ or an â€˜independent advisorâ€™ and offer exceptionally high return rates for investors. Â
Some victims have signed documents that authorises a limited company to be set up using their personal details, including utilising a Small Selfâ€“Administered Scheme (SSAS).Â
Whilst SSAS accounts and limited companies are essential for legitimate schemes, the fact that victims are unaware that this will happen suggests that the scheme may not have been fully explained to them, increasing the likelihood that there may be an element of fraud involved.Recent research released by Citizens Advice revealed that almost nine in 10 people miss common warning signs of a pensions scam â€“ such as unusually high investment returns, cold calling and offers of free financial advice â€“ despite feeling confident that they can spot fraudstersâ€™ tricks.
To report a fraud and receive a police crime reference number, call Action Fraud on 0300 123 2040 or use our online fraud reporting tool.