The MAM Blog – Five Million Pensioners – How Many Scammers?

Charles Robertson - Senior Investment Manager, Murray Asset Management
Charles Robertson – Senior Investment Manager

A recent headline from an FCA press release caught my attention and it was: –

‘5 million pension savers could put their retirement savings at risk to scammers’

Even if it is the life savings of only a small number of pensioners that in the end fall victim to fraudsters, the sum involved could be very significant and the consequences are obviously devastating. The average sum involved in a pension scam is £91,000. Some other numbers for 2018 are worth highlighting: –

• Fraudulent ‘Cold calls’ relating to pensions exceeded £10 million.
• There were approximately 60,000 phone scams relating to HMRC.
• Investment scams cost their victims £197 million.

The fastest growing crime is ‘cybercrime’ and it seems likely that frauds and scams relating to savings and investments are going to become more common and complex. It is worrying that only half of all adults are confident about protecting themselves online. Generally, people are not interested in learning about the practical steps that can be taken in order to reduce the risk of fraud and being scammed and the fraudsters and scammers continue to take advantage of this ignorance.

The FCA through its ScamSmart campaign together with many banks and financial institutions are taking steps to raise awareness and to educate people. The FCA guidance can be found at:-

Click here for FCA guidance

However, the basic advice is: –

• Treat all unexpected calls, emails and text messages with caution. Don’t assume they are genuine, even if the person seems to know some basic information about you.
• Don’t be pressured into acting quickly. A genuine bank or financial services firm will give you time to think.
• Be careful before providing personal information. Scammers will be keen to get their hands on your personal details. Be wary of any emails or calls asking you for this information and, if in doubt, call the company the contact claims to be from. Generally, companies do not ask for personal details and passwords via email. This is particularly applicable to bank details like sort codes and account numbers.

If in any doubt just contact us to discuss your concerns. It is a sad fact that people become very interested in the steps that they could have taken to protect themselves online after the event.