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Some pension scam victims lose more than £1m to fraudsters - MSE News
Former_MSE_Callum
Posts: 696 Forumite
Some victims of pension scams have lost more than £1 million in savings to fraudsters, newly revealed data shows...
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'Some pension scam victims lose more than £1m to fraudsters'
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'Some pension scam victims lose more than £1m to fraudsters'
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Comments
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Doesn't surprise me. I've spent some time trying to unwind some of the damage caused to clients because they were scammed at some point in the past. It's horrible to see what some unscrupulous expletives will do to innocent savers.I am a Chartered Financial Planner
Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.1 -
A good rule of thumb is to never give any time to salespeople if they ring or come to the door. The only kind of offers I will look at are ones that I have researched myself, or have come through the post from my own bank etc. I know these scams are not limited to phone calls, but if someone rings you out of the blue with an offer that is too good to be true then the chances are it is. Although I suppose the scum that do this kind of thing rely on getting someone on the phone who is vulnerable, I will gladly take up my warm seat in Hell as long as I know these guys are suffering a few floors farther down! :rotfl:Think first of your goal, then make it happen!1
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Are Mr S and I the only people in the UK who have never been cold-called by one of these scammers? I'm almost disappointed - I was looking forward to a good 'discussion' !0
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Or greedy .barnstar2077 wrote: »the scum that do this kind of thing rely on getting someone on the phone who is vulnerablepoppy100 -
Me neither, all I get is Microsoft helpdesk and TalkTalk calling me about viruses on my router. It's fun playing along but a bit of variety would be nice....Silvertabby wrote: »Are Mr S and I the only people in the UK who have never been cold-called by one of these scammers? I'm almost disappointed - I was looking forward to a good 'discussion' !
:money:"We act as though comfort and luxury are the chief requirements of life, when all that we need to make us happy is something to be enthusiastic about” – Albert Einstein0 -
Cold callers offering a free pension assessment.
Hooking them up with dodgy IFAs who have no shame about taking huge commission for recommending inappropriate products often promising huge returns and 'tax efficiency'.
IFAs working for shady unregulated offshore companies who are linked with scam investment funds.
Very difficult to pull the evidence trail together to get successful prosecutions.
But you have to question the reckless consumers who get sucked into deals that are too good to be true and he scammers will always claim the risks were explained. So I agree with Poppy that some people are greedy and also reckless when it comes to handing over life savings.Mr Straw described whiplash as "not so much an injury, more a profitable invention of the human imagination—undiagnosable except by third-rate doctors in the pay of the claims management companies or personal injury lawyers"0 -
Cold callers offering a free pension assessment.
Hooking them up with dodgy IFAs who have no shame about taking huge commission for recommending inappropriate products often promising huge returns and 'tax efficiency'.
IFAs working for shady unregulated offshore companies who are linked with scam investment funds.
Any IFA involved deserves extreme punishment. However, the majority of scams didnt involve IFAs. Where they did, then it will be the good IFAs picking up the bill for the FSCS payouts. Where no adviser was involved, that money is lost unless the SIPP providers get hooked into it. You often find it is the same SIPP providers that took these investments. They must have been complicit. Although in the later years of the scams, you tended to find SSAS was the vehicle of choice as the scammers could set them up without any regulated company involvement.
In a case I helped try and sort out, the scammer was spoofing a genuine advice firm but changed the address and contact numbers. So, the genuine firm didnt know anything about it.
You cannot underestimate the impact greed and naivety plays in these scams. I tried talking someone out of doing it but as I couldn't tell him that what he had with me was guaranteed to make 10% a year whereas the other scheme were telling him he would get more than that, he believed them. After I warned him that it was unregulated and high risk and likely to lose his money, he swore at me and hung up.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
A couple of months ago I was invited to connect to some financial adviser out of the UAE on LinkedIn.
It turns out they were offering to transfer my (tiny) UK occupational pension to Australia (where I am now).
I didn't bite.
Roll forward to an overheard one side of a phone call, and it seems that men in suits (a warning itself, it was 33C outside today, not a suit in sight) are coming over here and chasing prospects for this same "service".
I imagine that they would be taking a substantial bite out of any pension they transfer (flights, hotels, suits are not free) - and that is if they are above board.
Sounded like - or I interpret - on "whale" this guy was chasing was worth over 1.2 (assume Million? AUD or GBP?).
This one was based out of Spain - talk loudly in a coffee shop and don't be surprised if someone overhears!
I imagine with multiple jurisdictions involved this is - at least - not illegal?0 -
Possibly multiply illegal - but far far harder to stopI imagine with multiple jurisdictions involved this is - at least - not illegal?0 -
I'm very interested in this topic. I have not sufferred any loss myself, but had very poor service a few years ago from a legitimate IFA. My understanding today is that if you want to liquidate a substantial pension for cash, then you HAVE to engage an IFA - and presumably a proper IFA comes with professional status, liability insurance, and proper checks & balances. So how, exactly, are these scams still happening ?
Also, I feel compelled to say, that it generally takes two to strike a bargain - so there has to be an element of vulnerability, stupidity or greed (or all three) in some of these cases - but that never gets said....0
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