More than 173,000 people have sought information about pensions scams, since a joint initiative was launched by the Financial Conduct Authority and The Pensions Regulator this summer.
This is a five-fold increase when compared to numbers checking prior to this campaign.
Currently an average of 3,145 people are visiting the ScamSmart website a day, this equates to roughly one enquiry every 27 seconds.
This is a staggering 462 per cent increase on the 562 visits the site received prior to this joint initiative.
In an update the FCA and TPR reported than over 370 pension holders were warned about firms, using the regulator’s ‘Warning List’ – an online tool that helps consumers check a list of firms operating without authorisation.
Research from the FCA estimates over 10m adults in the UK received an unsolicited pension offer in just one year. The Treasury has laid regulations that will ban pension cold calling early in 2019.
The two regulators are urging pension holders to be on their guard against pension scams as new research suggests that half (52 per cent) of 45-65 year olds with a pension do not think they are likely be targeted by a pension scam.
The most common reasons given were that they are too savvy to be scammed (21 per cent) or that they didn’t have enough money saved in their pension (cited by 18 per cent of respondent).
Figures show that victims of pension scams last year lost an average of £91,000 each to fraudsters. They reported receiving cold-calls, offers of free pension reviews and promises that they would get high rates of return – all of which are key warning signs of scams.
TPR’s executive director of frontline regulation Nicola Parish says: “The dramatic increase in the number of people visiting ScamSmart for information is very encouraging but this is not the end of the campaign.
“Every pension holder is a potential scam victim so it’s vital that we continue spreading the word about scammers and how they operate to prevent more people handing over their funds to criminals.”
The FCA’s executive director of enforcement and market oversight Mark Steward adds: “Our research shows that many pension holders believe they are too savvy to be scammed. But pension scams are often very sophisticated and difficult to spot. Scammers will target people from all walks of life and with any size pension.”
“The best way to protect yourself is to always check the FCA Register to make sure that anyone offering you pension advice or any other financial service is authorised by the FCA.”
The minister for pensions and financial inclusion, Guy Opperman, Minister for Pensions and Financial Inclusion says: “Pension scams are devastating for people. I would urge savers to always exercise caution and seek independent guidance or advice before making important financial decisions – free, impartial guidance is available from Pension Wise or The Pensions Advisory Service.”
The FCA and TPR are part of Project Bloom, a multi-agency taskforce which is working to combat pension scams. The taskforce includes the Department for Work and Pensions, HM Treasury, the Serious Fraud Office, City of London Police, the National Fraud Intelligence Bureau, The Pensions Advisory Service and the National Crime Agency.
AJ Bell senior analyst Tom Selby adds: “The FCA and TPR deserve credit for finally taking the bull by the horns on pension fraud. By launching a dedicated campaign warning about the dangers of scams – including a highly effective television advert – the regulators have already helped boost awareness among consumers.
“Ultimately improving engagement and understanding of scams is the most effective way to tackle the problem in the long-term. The research published today tells us more work still needs to be done on this front, with many people aged 45 to 65 years old still seemingly oblivious to the fact they are prime targets for pension scammers.”