Recent figures show that the number of people who have fallen victim to pension investment fraud has increased by 70%. Savers were tricked out of £176m in the past year.
The average age of victims was 57. This shows that older savers are being targeted, leaving people concerned for their pension pots.
Pension investment fraud
One of the most valuable assets owned by the majority of people is their pension pot. With pension freedom reforms, workers can now withdraw their pension at the age of 55. This offers more flexibility, however it leaves them vulnerable.
The majority of people do not have enough investment knowhow to choose the perfect pension plan. As a result, this will leave them to seek out retirement advice.
However, the option to seek advice sometimes leaves them vulnerable to fraud. Choosing the wrong adviser can result in bad advice. Investing in an unregulated self-invested personal pension (Sipp) scheme puts a person’s pension pot at risk.
Fraudulent schemes
Many people looking for a financial security in retirement have fallen victim to various types of pension investment fraud. Schemes such as Ethical Forestry, Guestinvest and Store First promised high returns and low risk. However, if a scheme looks too good to be true, it usually is.
We currently represent over 1,500 clients who are in the process of making Sipp claims, showing that it can happen to anyone. Advisers can come across as genuine and even experienced investors are often duped.
Cold-calling scams
One scheme that leaves many victims of fraud is cold-calling. Scammers will place a call and convince people to invest their pension pot into a Sipp. As a result, the money will be lost or placed into an unsuitable scheme.
Recently a ban was planned by the government. Unfortunately this has been pushed back indefinitely after the deadline was missed and consequently, this leaves many more people vulnerable to being scammed.
Have you fallen victim to investment fraud and lost money as a result? Get in touch with our expert team to discuss your claim.