Is my dad being led into a SCAM?

jamesd

The Pensions Regulator, please consider modifying this text:

"If you have already accepted an offer report it to Action Fraud on 0300 123 2040."

to add the guidance:

"Immediately contact all of your pension providers to tell them that you may have given a scammer your account details and that they should not carry out any transfers without confirming with you directly."

The reason for this suggestion is that sometimes people realise after completing paperwork that would allow transfers but before the transfers have happened. This gives a time window for urgent contact with existing providers to prevent loss of their money.

While it is not a suggestion for a change, it is perhaps of interest that:

"Convincing marketing materials that promise you returns of over 8% on your investment."

can describe mainstream investing in tracker funds in the UK or other stock markets and many other legitimate investments. Historic returns of the UK market have been around 5% plus inflation so any time inflation is at 3% it's included. Other ways to get 8% and more that are entirely legitimate include or have included:

1. VCTs, I know of some that will pay 10% or 11.1% tax free and have 30% of the purchase price refunded by HMRC.
2. P2P, over 10% taxable is available.
3. Not today but at various times regular saver accounts have offered 8%, 10% and 12% over the last ten years or so.

However, I've been cold called with a mention of 8% so I don't think that removing it is desirable, but perhaps a note that there are mainstream domestic investments that can offer 8% might be worthwhile to show it is an indication but not proof.