Pension fraud 9 times more likely online

Pension savers are nine times more likely to accept advice from a pension scammer online than they would in person, according to new research from the Financial Conduct Authority (FCA). According to the regulator, savers are also five times more likely to be interested in a free pension review from a stranger online. However, only 28% of pension savers are aware a free pension review online is a classic scam indicator, according to the report. A third (36%) were also unable to recognise time-limited offers as a sign of a scam. Only 40% knew to be wary of opportunities to transfer their pension. The report from the FCA comes as data from Action Fraud shows over £2.2m has been lost to pension scammers since the start of the year. According to Action Fraud, the average loss to pension scams since the start of the year was £50,949, over double the figure reported in 2020. The FCA has urged pension savers to “flip the context” when approached with pension offers, by imagining the same offer in person in an everyday offline setting such as an afternoon in the pub. The regulator has teamed up with psychologist Dr Linda Papadopoulos to highlight the most common scam tactics by putting them in everyday settings. Mark Steward, executive director of enforcement and market oversight at the FCA, said: “Imagine a stranger in a pub offering free pension advice and then telling you to put those savings into something they were selling. It is difficult imagining anyone saying yes to that. “It’s no different online. Whether you’re on social media or checking your emails, if someone offers you free pension advice, ‘flip the context’ and imagine them doing the same thing in real life. Stop and think how you would react. “Fraudsters will seek out every opportunity to exploit innocent people, no matter how much they have saved.”

Pension fraud 9 times more likely online – FCA

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