Between April and June, 1685 pension scam assessments were completed using helpandadvice.co.uk’s MoneyHelper flagged scam predictor tool.

A quarter of those approached were asked to make a quick decision on whether to transfer, up significantly from 15 per cent in the previous quarter.

The average scam likelihood score was 23 per cent, meaning that of the 1685 people that completed the assessment, almost a quarter of cases had associated red flags, a red flag means further investigation is needed.

Having tracked the data for over a year, helpandadvice.co.uk said the potential likelihood of a scam consistently remained at around 25 per cent.

Pension scams and the cost of living

Saq Hussain of helpandadvice.co.uk said scammers were taking advantage of rising inflation and mortgage rates.

He said: “Scammers will tap into the prevailing mood of concern about finances, and unfortunately, realising the assets within a pension may be the only option left for some people. Worryingly, 1 in 4 people are being urged to make a quick decision on transferring their pension and this does not sit comfortably given the current environment.

“This quarter saw the highest number (1685) of helpandadvice.co.uk Pension Scam Assessments completed. Hopefully this is a sign that people are becoming more scam aware and acknowledging they need help identifying red flags before they make a decision that could have disastrous consequences. A short-term fix to solve the current cost of living crisis could well have a lifelong impact.

“We urge everyone considering a pension transfer to head first to our Pension Scam Assessment – its free, simple and easy to use and provides a sense check, raising warning flags based on their answers to a range of questions, with clear signposts about what to do next.”

Hussain said that if the pension scam assessment tool identifies a concern it will then instructs the saver to:

• Stop doing anything further with the transfer;
• Contact the adviser to get answers to the questions raised by the red flags identified by the tool;
• Contact their pension company, pension administrator, the employer or trustee to which the pension relates, ask to stop any transfer payment and to help determine whether the pension is being transferred to a legitimate pension scheme;
• Report to the Financial Conduct Authority (FCA) by contacting their Consumer Helpline on 0800 111 6768 or using the scam reporting form at www.fca.org.uk;
• Report to Action Fraud on 0300 123 2040 or www.actionfraud.police.uk.

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