Pension Scams: Over 55s at heightened risk of fraud

26/05/2016 11:54:56 PM // Written by Phil Stockton

Pension Scams: Over 55s at heightened risk of fraud

Yesterday the UK’s financial regulator (FCA) issued a stark warning regarding the increasing risk of retires being scammed via investment fraud. They point to low interest rates as being a key driver as investors seek higher returns. This is a problem we know only too well in Hong Kong, one recent and infamous case being the Lehman minibonds saga (finish reading this then grab a coffee and Google it).

The FCA’s press release stated that:

“Over 65s with savings in excess of £10,000 three and a half times as likely to fall victim to investment fraud”

“More than a quarter of over 55s falling victim to investment fraud are scammed via an unauthorised firm selling unregulated products, such as wine, diamonds and land”

You can find a link to the report at the bottom of the page. In the meantime here are the FCA’s tips on how to be a ScamSmart investor:

  • Investment fraud is often sophisticated and very difficult to spot.
  • Fraudsters can be articulate and appear financially knowledgeable.
  • They have credible websites, testimonials and materials that can be hard to distinguish from the real thing.
  • Get the tools to spot investment scams:

ü  Reject unsolicited contact about investments

ü  Check the FCA Warning List

ü  Get impartial advice

The FCA Press release is here and their ScamSmart site is here. Visit both sites and follow the three basic rules listed above

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