Wealth Design News

Victims of pension scams last year lost an average of £91,000 each to fraudsters, new figures show. Overall, since 2015, the Insolvency Service has wound up 24 companies involved in pension fraud, representing 3,750 victims and £202 million of contributions. In April that year, the pension freedoms were introduced, giving pension savers unfettered access to their pots. This led to a spike in pension scams, as fraudsters attempted to capitalise on pensions becoming more flexible and easier to access. In theory, pension scams will become less commonplace, thanks to the government’s implementation of a ban on cold-calling relating to pensions earlier this month. This means in effect that any phone-call that you receive from an unknown person or company, where they ask about your pension, is an illegal call.