Pension fraud (BBC article)

[Phooey]

Heard on Radio 2 this morn about fraudulent companies targeting people with pensions by offering free reviews, attractive returns etc etc.

It got me thinking about how the hell do these companies get away with it? I thought the gov had implemented huge regulations to stamp out pensions/investments fraud. Also how would someone know if they are invested in something dodgy before it's too late? I assume if it's happening to pension investments it's also happening with ISAs?

https://www.bbc.co.uk/news/business-50331965

[The Leaper]

The processes have been substantially strengthened over recent years and this, if followed and accepted by the person seeking to transfer, will likely root out scams. The problem is that the person seeking the transfer often interprets the transferring organisation's many questions as being barriers that they have put in the way in order that the transfer does not proceed so that they retain the money, in which case a scam is a possibility.

The bottom line, as always, is never act on someone else's contact to you: always act on your own initiative.

R.

[JulianPH]

As has been said, never trust anyone contacting you directly and always check the firm against the FCA Register:

https://register.fca.org.uk/

[Phooey]

Cheers for replies. I genuinely feel for those affected by these scams and I worry for people like my parents when I read articles like this

That link is a handy little checker Julian

[JulianPH]

Phooey said:

Cheers for replies. I genuinely feel for those affected by these scams and I worry for people like my parents when I read articles like this

That link is a handy little checker Julian

Cheers mate, if a firm is not authorised (or no longer authorised) people need to run away!

Here is a more detailed version of the BBC story:

https://www.professionalpensions.com/news/4006682/...

[mikeiow]

Phooey said:

Heard on Radio 2 this morn about fraudulent companies targeting people with pensions by offering free reviews, attractive returns etc etc.

It got me thinking about how the hell do these companies get away with it? I thought the gov had implemented huge regulations to stamp out pensions/investments fraud. Also how would someone know if they are invested in something dodgy before it's too late? I assume if it's happening to pension investments it's also happening with ISAs?

https://www.bbc.co.uk/news/business-50331965

Hang on a minute.....Julian keeps offering Nik out for free....

JulianPH said:

Phooey said:

Cheers for replies. I genuinely feel for those affected by these scams and I worry for people like my parents when I read articles like this

That link is a handy little checker Julian

Cheers mate, if a firm is not authorised (or no longer authorised) people need to run away!

Here is a more detailed version of the BBC story:

https://www.professionalpensions.com/news/4006682/...

Ahhh....gone in 24 hours?
Naaah: my IM pot is still there, months in

[JulianPH]

mikeiow said:

Phooey said:

Heard on Radio 2 this morn about fraudulent companies targeting people with pensions by offering free reviews, attractive returns etc etc.

It got me thinking about how the hell do these companies get away with it? I thought the gov had implemented huge regulations to stamp out pensions/investments fraud. Also how would someone know if they are invested in something dodgy before it's too late? I assume if it's happening to pension investments it's also happening with ISAs?

https://www.bbc.co.uk/news/business-50331965

Hang on a minute.....Julian keeps offering Nik out for free....

JulianPH said:

Phooey said:

Cheers for replies. I genuinely feel for those affected by these scams and I worry for people like my parents when I read articles like this

That link is a handy little checker Julian

Cheers mate, if a firm is not authorised (or no longer authorised) people need to run away!

Here is a more detailed version of the BBC story:

https://www.professionalpensions.com/news/4006682/...

Ahhh....gone in 24 hours?
Naaah: my IM pot is still there, months in

Drat, I've been rumbled!

[tight fart]

You can see how it happens, I’ve been paying the into my Pru pension for 35 years, I called the other day as I want to move it into a drawdown account, even if I stay with them they want 2% for me to receive the advice and move accounts.
No wonder people get scammed looking to try and save fees.

[LeoSayer]

Why don't pension administrators or trustees have an obligation to do some due diligence before they act on a transfer instruction?

[The Leaper]

They do.

[Stay in Bed Instead]

The Leaper said:

They do.

Don't they just!

I have even had to provide certified ID for the Directors of my Ltd to get a transfer into a SSAS that we administer.

[LeoSayer]

Then I don't understand how these frauds can happen.

[The Leaper]

As I posted earlier, some people cynically see the checks as positive barriers put in place in order to stop people taking their money away, so they give authority to proceed anyway. And that authority is often given by the target person to the scammer to process with the money-holding company anyway, which is crazy. But I think that most pension scams occur simply because people are taken in, ignore all the warnings, don't do all the checks that they should, etc.

If the money-holding company does all the compliance checks, requests all the necessary information, and has the authority to proceed from whatever source, the scam is likely to be successful, and there likely will be no come back..

R.

[LeoSayer]

Why can't the money holding company simply refuse the transfer request, on the grounds that it's not in the client's interests?

[The Leaper]

Whether or not it's in the client's personal interest is not a matter for the insurance company or whoever is holding the funds. They do not know all the relevant facts about their client and what is or is not in that client's personal interest.

R.