As the saying goes, if it sounds too good to be true, it probably is!
Scammers use a number of tactics to trick investors out of their savings. Some of those tactics are set out below:
- A cold call, text message, website pop-up or someone coming to your door offering you a 'free pension review', 'one-off investment opportunity' or 'legal loophole';
- Convincing marketing materials that promise you returns of over 8% on your investment;
- Paperwork delivered to your door by courier that requires immediate signature;
- A proposal to put your money in a single investment. In most circumstances, financial advisers will suggest diversification of assets.
Scammers don’t care whether you’re an inexperienced investor or have never put your money anywhere other than a bank. They will try to flatter, tempt and pressure you into transferring your pension fund into an investment with attractive sounding returns. Once you’ve signed the forms and the transfer has gone through, it’s too late. You could lose all your savings. Remember, the only people who benefit from scams are the scammers themselves.
The Pension Scams Industry Group, a voluntary body set up in the UK to combat pension scams through the publication of good practice in due diligence for trustees, providers and administrators - 'Combating Pension Scams - A Code of Good Practice'. While not directly relevant for Guernsey based pensions, the Code of Good Practice contains a lot of helpful information with the pension sector and consumer in mind.
Reporting a scam
Find out more information about how to report a scam.