Average losses from pensions scams now over £50,000

08 Jul 2021

The average loss from pension scams has reached £50,949 this year, according to the latest figures from Action Fraud.

That is more than double the typical figure of £23, 689 reported last year.

Action Fraud said the losses in each case ranged from less than £1,000 to as much as £500,000, and the real figures could be higher as many scams go unreported.

Mark Steward, the Executive Director of Enforcement and Market Oversight at the Financial Conduct Authority (FCA), said: 'Fraudsters will seek out every opportunity to exploit innocent people, no matter how much they have saved.

'Check the status of a firm before making a financial decision about your pension by visiting the FCA register. Make sure you only get advice from a firm authorised by the FCA to provide advice, before making any changes to your pension arrangements'

The FCA highlighted five common warning signs:

• Being offered a free pension review out of the blue
• Being offered guaranteed higher returns
• Being offered help to release cash from your pension, even though you are under 55
• High-pressure sales tactics - scammers may try to pressure you with 'time-limited offers' or send a courier to your door to wait while you sign documents
• Unusual investments which tend to be unregulated and high-risk.

More information on pension scams is available from the FCA.