Don’t let a scammer enjoy your retirement

How To Protect From Pension Review Scams?

Customers should be aware of the threats associated with unsolicited pension review plans. Most victims are offered time-bound deals to make hasty rash decisions, and almost 50 per cent of the customers are not aware of methods the fraudsters can use to transfer their funds into the desired account.  

Recently, many customers of the bank received messages on their Twitter to alter their account details. The messages appeared to be coming from @Barclay. However, it says, "the account has been temporarily suspended due to failed login attempts, and you need to re-authenticate the account to access its features. 

The message has a link that redirects the customers to the re-authentication page. The bank responded to its customers' text messages and informed them that they were not sending any such mail and it was a scam.

The representative from the bank said the customers should verify the number on the online checkers to ensure their account is working. They need to fill in their phone number on the checker given on the website to get a notification related to their account on the linked phone number.

The bank also provided conditions where it will never call or send a text message to the customer. They assured, "would never ask for PIN or identity details." Furthermore, if anyone suspects fraud, they should contact the bank directly for support and guidance.  

The scammer sometimes uses spoofed numbers to target customers.  In such a case, use the number on the back of the bank's debit card or any other number, which the checker confirms is safe to call and contact the bank employees. 

How Does It Work?

• They offer free pension reviews where they will ask you to transfer funds into a valuable investment plan offering higher returns. So they guarantee to get you a very high profit /greater returns than what you are getting. 

• But in most cases, the options offered by them are into high-risk unregulated sectors where you may not get direct access to the documents or assets, and it may be not easy to sell or obtain your investment money back. 

• They send a courier to your door to get signed copies of the documents.

• They offer to release pension money even when you are below 55 years. They often use pressure techniques or offer bonuses, discounts, time-limited, money back or high returns to selling their schemes. 

• They offer a complicated structure of payment, where it is not clear when, how and how much money you will get through the project. 

• Most schemes are long term options where your money gets stuck for many years, and you realise you have been duped many years later when you want access to the returns/profits. 

How To Prevent A Loss?

• Do not discuss pension plans with strangers on the phone. Refuse all forms of unsolicited calls regarding reinvestment of pension money.  

• The FCA informed people that they need to flip the context if they are contacted by callers who want to discuss pension review or related schemes on the phone. 

• Do not click on links offering free pension reviews.

• If you seek any such services from a firm, check if the FCA has authorised it or get professional advice from an expert before committing to any changes in your previous pension plan.