Pension scams

Here are 10 tips to help you spot the warning signs of a scam and protect your pension

1. Reject the unexpected

   Always reject any unexpected calls, emails, texts or social media approaches about pensions.
   

   A government ban on cold calling regarding pensions came into force in January 2019. So, if you receive any unsolicited marketing calls about your pension, you should hang up.
   

2. Ignore ‘free pension reviews’

   Be very wary if you're offered a free pension review or advice by anyone.
   

3. Do your own research

   Research into who is offering you financial advice. Check the FCA register to make sure they're authorised by the Financial Conduct Authority (FCA) and have permission from the FCA to give you financial advice.
   

4. Be aware of pretenders

   Sometimes scammers may pretend to be from a firm authorised by the FCA, so you should always use the contact details provided on the FCA register - not the details they give you.
   

5. Scrutinise websites, even if they look good

   Don't be fooled by slick-looking brochures and websites - anyone can pay for a professional-looking one. Check all the contact details and accreditation you see there. If there are none, then it's probably a scam.
   

6. Don't be rushed!

   Never allow yourself to be rushed into a decision. Take your time to make all the checks you need - even if this means turning down an 'amazing deal'.
   

7. Look to your pension provider for transfer information

   Scammers may tell you that your current pension scheme will try to stop you transferring out, suggesting they just want to keep your money. This is not the case. If your scheme administrator, Railpen, suspects a scam, we have a legal obligation to try to protect your funds. You can read more on the Transferring your pension page.
   

8. Don’t trust an adviser who contacts you out of the blue

   Don't take financial advice from a company that has contacted you out of the blue. We’re aware that some companies are proactively contacting members, and would recommend you think carefully before speaking with them. You should never use an adviser they suggest, as this may be part of the scam. Similarly, if you're on the phone, a scammer may suggest you 'call someone else' to gain your trust. But the scammer doesn't close the line. You may think you're on a new call speaking to a trusted adviser, when in fact you're still speaking to a scammer.
   

9. Check the contact details

   If someone has approached you claiming to be from a well-known organisation, check that their contact details match exactly with any letters you’ve received. You could also contact the company directly, using their contact details from their official website.
   

   Contact numbers and text messages

   Scammers are clever, and they can make their contact numbers look like ones you would usually trust.
   

   A scammer’s message might even appear in a conversation with legitimate texts you’ve already received. If you’re suspicious, avoid clicking links in text messages.
   

   Check who you’re speaking to by contacting the company directly. Don’t use the numbers or address in the message, use the details from their official app or website.
   
   

   Email addresses

   If you get an email, double check the email address details to see exactly who it has come from. While it might seem legitimate, if it’s a scam, the email address the message has come from might not match up with the sender’s name.
   

   Other tell-tale signs to look out for are:

   • Spelling errors
   • Poor grammar
   • Random numbers in email addresses
   • Asking for PIN numbers or passwords, a legitimate company will never ask you for these details
   • Random competitions, which you may not remember entering
   
   
10. Take FCA-regulated advice
    Always get impartial information and FCA-regulated advice before you take any action with your pension. You can find more information on the Help and advice page.

Anyone could be targeted by a pension scam

• Pension scams are increasing and they’re getting harder to spot!
• Figures released by the Pensions Management Institute (PMI) show that over £26 million was lost to pension scams between 2020 and 2022. During the same time, 1,595 pension scams were reported in England and Wales.
• Pension scammers can be smart, pleasant, charming and financially knowledgeable.
• Anyone can be scammed, no matter how financially savvy you think you are, so it’s very important that you can spot the warning signs and know how to protect yourself.
• Someone else might notice the signs of a scam before you do. It’s a good idea to talk about your finances with friends, family – or experts if necessary - even if you’ve been asked to keep quiet.
• Once the money is gone, it’s almost impossible to get it back, so you MUST be vigilant!
  

Keep your Fund details safe

Pension scams are common, so it is important that you are vigilant and keep your membership information safe.

It is highly unlikely that we will contact you by phone, unless you have an ongoing query or case. We will also never ask for security information, such as your myFund login details.

Make sure you check the reason for any call you get about your pension, and feel confident it is legitimate before giving any personal information.

If something doesn’t seem right you can always get in touch with the scheme administrator, Railpen, to check.

If you have registered for a myFund account, it is also really important that you do not share your login details with anyone. If you think your details have been compromised, you can login and change your password at any time.

Where to find more information

For more information about pension scams visit the FCA website. You can also check out The Pensions Regulator's poster with steps to stay scam safe for information on how to protect your pension savings.

You can also visit MoneyHelper for free pensions guidance and information, or contact the experts on the Help and advice page.

At MoneyFit you can learn more about pension scams, including what to do if you have been a victim of a scam, and where to go for more support if you need it. MoneyFit can also help with your financial wellness, and managing your money beyond your pension. 

If you’re looking for financial advice, be very wary of scams and fraudsters. They often pose as advisers but are out to steal your savings.

Regulated financial advisers

Financial advisers can offer you professional advice on financial decisions. In order to operate, they must be authorised by the Financial Conduct Authority (FCA). This means they have to agree to a certain level of standards and you can get additional support through the Financial Ombudsman Service or Financial Services Compensation Scheme if things go wrong.

Liverpool Victoria (LV)

The Fund's administrator, Railpen, has appointed Liverpool Victoria (LV) to provide advice to all Fund members. This includes those in the CARE section, as well as the 1970 and 2007 sections.

LV is regulated by the FCA, covers all areas of pension and financial advice and has a dedicated team, with specific knowledge on the Fund. They balance the cost and quality of advice.

LV can be contacted on 0800 023 4187 and you can visit their website here.

You can also choose your own Independent Financial Adviser (IFA). Just make sure you understand all of the potential costs for their services upfront before making a decision.

Unbiased

You can find a register of Independent Financial Advisers (IFAs) at unbiased.co.uk. An IFA will help you understand your pension, the options available, and how to manage your finances.

By using Unbiased you can:

• Get contact information for IFAs in your area, including pension specialists
• Be matched with a suitable adviser based on what you need help with
  

All IFAs listed on the site are registered with the Financial Conduct Authority and the first meeting is typically free.

How to report a scam

If you’re suspicious of a scam, or if you think you’re being targeted report it to Action Fraud.

Report fraud any time of day and night on the Action Fraud website or by calling 0300 123 2040 Monday to Friday 8am - 8pm. If you are calling from abroad, call +44 300 123 2040. In Scotland, report to Police Scotland by calling 101.