Around 13 per cent of UK adults have fallen victim to pension scams in the past year, contributing to a total of 6.2 million people affected by financial fraud overall, according to research from WEALTH at Work
The study revealed that pension scams involved “fake promises of guaranteed returns or early access to pensions.” Additionally, victims of financial fraud lost an average of £1,000.
The study highlights various scams targeting UK adults with 27 per cent losing money through purchase scams involving fake products, 19 per cent through investment scams promoting fraudulent opportunities, and 18 per cent each through friends or family scams and bank account scams claiming compromised accounts.
Additionally, 15 per cent fell for tech support scams seeking personal details, 14 per cent were duped by befriending/romance scams, 10 per cent were misled by tax refund scams, and 9 per cent were tricked by lottery scams involving fake prize notifications.
WEALTH at work director Jonathan Watts-Lay says: “Financial scamming is rife and it’s shocking that many people have lost money not just once, but multiple times to scams. People need to be on their guard as fraudsters use many convincing techniques to persuade their victims that they are genuine. Many of these scams look completely legitimate and are not easy to spot. People often get seduced by the promise of investment returns which are too good to be true.
“Those that run scams are clever and may have been able to get hold of personal details. They often have very professional-looking websites and literature which makes it hard to distinguish from the real thing. They will also use technology and try to contact individuals through various means such as social media, texts, telephone calls and emails. If someone is planning to transfer any money or make a payment, but they are not 100 per cent sure that they are doing the right thing, they should stop and think to give themselves time to check it out.
“If they are feeling harassed, they should hang up the phone or delete the message. Phone companies should be able to help by blocking any offending numbers, and email providers can help block emails from specific senders. People should be aware of what they share through social media and check that their privacy settings are as secure as possible.
“Unfortunately, the current strain on household finances could mean that some people are more vulnerable than ever and fraudsters can take advantage of this. Those approaching retirement could also be a key target as they could have access to relatively large sums of money. I urge everyone to never rush to make a decision when it comes to their money as anything that talks about time limited offers is likely to be a scam.
“We would encourage people to follow the 3 step approach of the national ‘Take Five’ campaign by UK Finance, a leading industry body for financial services in the UK. The campaign urges individuals to stop and think before parting with money, challenge if something is fake, and protect their money by contacting their bank if they think they’ve fallen for a scam.
“Before investing any money, people should check that the company is registered, with the Financial Conduct Authority (FCA) first, as if they’re not, it’s probably a scam. The FCA’s financial register can be found here https://register.fca.org.uk/s/. The FCA’s ScamSmart website also includes a warning list of companies to be aware of https://www.fca.org.uk/scamsmart. If anyone thinks that they are being scammed, they must report it on the FCA’s ScamSmart website. Not only may they be able to help them, but they will be able to help others from falling for the same scam.
“Many leading employers offer financial education, guidance and access to investment advice to help people understand the warning signs when it comes to a scam so that it can be avoided. Employers play an important role in supporting the financial wellbeing of their employees and helping them to protect their money from scams throughout their career and at retirement is key. As well as this, many employers also provide employees with access to trusted savings and investment vehicles such as a Workplace ISAs or Share Plan, so the fear of being scammed should never be a barrier to saving for the future.”