Can you detect a pension scam?

That’s right.

The normal minimum pension age is the youngest age at which a member of a registered pension scheme can ordinarily expect to take their benefits unless special circumstances apply, for example where a member is in ill health. The current Normal Pension Age is 55. After reaching that age, there are options on how to access your pension. But since the website claims Melanie can take cash out of her pension before age 55, she should heed the warning signs. If she went ahead, she might not only lose her pension to a scammer but could also owe a significant amount in taxes to HMRC because she withdrew her money too early.

Melanie should always check the Financial Services Register to find out whether a company is FCA authorised. Sometimes fraudsters will claim to be FCA authorised so she needs to ensure that the firm’s reference number and contact details on the FCA Register match the details provided by the company. If there are no contact details on the FCA Register or if the firm claims they’re out of date, she should call the FCA’s Consumer Helpline on 0800 111 6768 to check that the firm is authorised. She should consider taking financial advice from a regulated financial adviser before she makes any decisions on what to do with her pension savings. Melanie can visit MoneyHelper, an independent and impartial organisation backed by the government to help people make financial decisions, for information on investing and how to find a financial adviser.

No, there are plenty of reasons for Melanie to be cautious here. Try again.

Sorry, that’s incorrect.

Yes, that’s right.

Pressurised, time-limited offers or sales tactics are suspicious. A long-term decision shouldn't be made in a hurry and any legitimate investment firm would not pressure you to invest. Phrases like ‘one-off investment’, ‘savings advance’ and ‘cash back’ are a common sign of pension scams.

Ben should check the FCA Register to make sure that the firm he is dealing with is authorised and should call the FCA’s Consumer Helpline on 0800 111 6768 if there are no contact details on the Register. Ben shouldn’t feel rushed into making a decision about his pension and should consider getting impartial advice from an independent FCA authorised financial adviser before he makes a decision about what to do with his savings.

You’re right.

Mike might think he’s doing adequate research to protect himself but there’s a string of warning signs he should take notice of. Cold calls about pensions were made illegal in January 2019. So unless Mike requested that someone contact him, he should not trust a phone call out of the blue. At USS, for example, we’ll never cold call our members but will always write or email instead. If you get cold-called about your pension, the safest thing to do is hang up. If you get unexpected offers by email or text, it’s best to simply ignore them. Mentions of ‘loopholes’ and ‘releasing your pension’ should also ring alarm bells. And just because a company has set up a website, does not make it legitimate. It's easy to set up a quality looking site and all the marketing materials to support it – scammers are good at gaining people’s trust through digital media. Mike should check the contact details on the website against the FCA Register and consider seeking out independent advice from an FCA authorised financial adviser before making decisions in relation to his pension.

No, sorry, that’s not the right answer.

• Guaranteed high returns
• Early pension release
• Under 55? Release your pension fund
• Pension loans
• Pension loophole
• Free pension review
• Cash in your pension
• One-off investment opportunity
• Liberate your pension

No, try again.

You’re right.

First off, he shouldn’t automatically trust his colleague – his colleague could be the victim of a fraudster. Tyler should be wary of offers of overseas investments as these can be unregulated and without consumer protection. Complicated investment structures can also be a sign of a pension scam. Again, as in the other scenarios, Tyler’s next steps should be to check the firm against the FCA Register and consider taking impartial advice from an FCA authorised financial adviser before making decisions about investments.

It might be worth Tyler talking to his colleague about his concerns so they can protect themselves as well.

That’s not right. Select again.

Correct.

She needs to report it to the FCA via their Consumer Helpline on 0800 111 6768 or fill in the reporting form. Alternatively, in England, Scotland and Northern Ireland, Lesley can report suspicions about potential fraud/cybercrime or fraud/crime that has already happened to Action Fraud on 0300 123 2040 or at actionfraud.police.uk. In Scotland, she should call Police Scotland on 101 or Advice Direct Scotland on 0808 164 600. If she is in the middle of a transfer, Lesley should contact her pension provider immediately, they may be able to stop a transfer that hasn’t taken place yet and if she has given her bank account details to a firm which she thinks may be operating a scam, she should also tell her bank immediately.