Pension scams are becoming increasingly complex, which is why it’s best never to discuss your pension with anyone unless with your provider directly. However, here are a few terms you can look out for to identify whether contact being made with you is a scam:

The scammer may lead with seemingly harmless advice, such as ‘free pension reviews’ or ‘no-obligation pension advice’
Mentions of ‘pension liberation’ or ‘loopholes’ in the system
Suggesting they can help you get better returns on your pension
Helping you to access your pension before the standard age
Putting you under pressure with time limited offers
Mentions of investments, whether it’s fixed-term, high-risk or low-risk
There are many more examples of what a pension scam looks like, but the main red flag is when someone contacts you about your pension out of the blue, which often isn’t done by legitimate advisors. This is why ignoring the contact and getting in touch with your provider directly is the safest option. When someone makes contact with you about your pension saying they will be able to help you, it will probably sound too good to be true, and unfortunately it’s likely that it will be and that it is actually pension fund fraud.

Pension scams come in all forms, however there are a few consistent scams that you should be particularly aware of:

Someone making contact and claiming to provide a free pension review, no-obligation advice or simply just offering to talk through your options. They will build your trust over time, and potentially multiple calls, then will work to steal your pension.
Claiming to know loopholes to help you gain liberation from your pension, whether that’s accessing more than the standard 25% tax free pension amount or investing on your behalf to transform your pension funds.
Offering limited time investments or exclusive offers to encourage you to provide your details or make payments
These are just a few examples of pension scams and unfortunately there are plenty more out there, so if you are ever contacted out of the blue about your pension, or see an advert mentioning any of the points of concern above, always reach out to a legitimate scam support website (FCA Scam Smart and Action Fraud) and they will be able to assist you.

Some of the red flags of pension scams can include:

Offering free pension reviews
Promising to provide better returns
Unlocking your pension early
Tax loopholes
Any mention of pension loans
Time limited offers
Random contact about your pension from anyone who isn’t your provider

Loan fee fraud: You’re accepted for a loan, but before it’s “approved”, you’re asked to pay a fee for insurance, processing or an admin charge. Once paid, the loan never arrives, and the scammer disappears with your funds.
Job scams: You apply for a job and are told you’ve been successful. But before you can start, you’re asked to pay for background checks, training, or admin costs. Once paid, the job offer vanishes, and so does the scammer with your money.
Social media competition: You’re told you’ve won a prize in a competition, perhaps one you never even entered. But to claim it, you need to pay a small fee for delivery, verification or admin. After you pay, the prize never arrives because the competition was fake.
Rental property scams: You find a great rental property online. The “landlord” asks for a deposit to reserve it, often claiming there’s a lot of interest or that you can’t view it in person. After you send the money, the property turns out to be fake — or already rented to someone else.

If you think you’re a victim of a pension scam, contact your pension provider immediately. They may be able to pause the transfer if the payment hasn’t been taken, or it’s in the process of being taken.

After contacting your pension provider, if the transaction couldn’t be stopped, you should contact legal experts specialising in wealth recovery and pension scams to help you. Time is of the essence when it comes to recovering lost funds, so as soon as you realise you may have been scammed, contact experts. If this is the situation you are in, contact us.

The next step is to report the pension fund fraud to the police and also other fraud support companies, such as FCA Scam Smart and Action Fraud. They help to regulate different financial services and markets, so could help to prevent the pension scam from occurring again, as well as providing any information that could be useful.