Beware of Overseas Transfer Scams
In our last newsletter we told you about the ongoing threat of pension scams. There are unauthorised overseas companies targeting pension scheme members, encouraging them to transfer their pensions abroad. These offers often promise high returns, early access to funds, or tax advantages but they can come with serious consequences.
Some members have reported being contacted by firms based overseas, claiming they can help transfer pensions into international investment schemes. These companies are not authorised by the Financial Conduct Authority (FCA) and may not have your best interests at heart.
The Trustee will never give your contact details to financial advisers or ask a financial adviser to contact you.
Once your pension is transferred, it can be extremely difficult or even impossible to recover your money if something goes wrong.
Pension schemes based overseas are not covered by the Financial Services Compensation Scheme (FSCS), so you wouldn’t be entitled to compensation under the scheme if your pension provider went out of business.
How to Stay Safe
Never rush into a decision about your pension.
Don’t be seduced by promises of a guaranteed investment return – they don’t exist
Speak to a regulated financial adviser before making any changes.
Report suspicious activity to Action Fraud on their website: www.actionfraud.police.uk
Protect yourself and your pension
There are lots of resources available online to help you – a good place to start is the FCA’s ScamSmart website: www.fca.org.uk/scamsmart
Reporting a suspected scams
If you think you might have been targeted by a scammer, don’t panic. Start by reporting it to the FCA: go to their website, www.fca.org.uk/contact, for details of how to get in touch and what will happen next.
