The Financial Conduct Authority Is On The Lookout For Pension Scammers

With the upcoming pension reforms, pensions con artists and scammers are expected to be on the rise. The Financial Conduct Authority (FCA) is well aware of the threat and has stated that it will be on the lookout.

The Chief Executive of the Financial Conduct Authority, Martin Wheatley, has announced that pension con artists are expected to target retirees when the April 6th pension reforms are still fresh. In a recent speech, Wheatley explained that, “Scams and fraud, we know, tend to proliferate at the moment of maximum uncertainty.”

The new pension rules will mean that savers will have greater access to their pension pots than ever before and will be able to spend their defined contribution (DC) savings as they see fit. It is expected, therefore, that pension scammers will be trying to target those coming up for retirement who are not quite certain of the new rules and who may be likely to believe any lies that the con artists come out with, given their unfamiliarity with the pensions landscape.

The fact that many of those coming up for retirement will have large debts is also a reason for the FCA to be worried about savers putting their faith in whatever tricks the scammers have to offer. Wheatley explained, “A particular risk, given that many of those approaching retirement today will (unlike their parents' generation) be carrying debts with them." 

The FCA is, therefore, going to be on the lookout for any suspicious activity and here at DAM we have put together a handy list of 5 ways to detect a pensions con artist. It’s worth a read for anyone coming up to retirement who is unsure of how to keep their money safe.

_{Photo credit goes to Nit Soto}