The number of people convinced to move pensions to increase their investment returns doubled from 12 per cent in the prior quarter to 23 per cent between September and December, according to the latest Pension Scam Assessment analysis from helpandadvice.co.uk.
The greatest number of Pension Scam Assessments were performed during this time, and the average scam possibility score increased from 19 per cent to 23 per cent. A red flag indicates a possible problem even though it doesn’t prove it’s a scam.
Email is still the most common way to make unsolicited advances, accounting for 3 per cent of contact.
The previous quarter saw a 15 per cent rise in the difficulty of locating a physical address on an advisor’s website, up from 4 per cent. A growing number of advisors are also asserting that their assistance is time-limited, which puts pressure on people to make decisions quickly.
helpandadvice.co.uk Saq Hussain says: “While inflation rates have reduced and mortgage rates are starting to look more promising, the cost of living crisis is still biting for the average person. Scammers are incredibly sophisticated but the current economic climate enables them to be opportunistic and more easily take advantage of the vulnerable financial situations some people may be in.
“With all of the key indicators of potential pension scams rising versus last quarter, we urge anyone approached or already in conversation with a company to transfer a pension 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.
“While the current cost of living crisis is making life difficult for many, we are starting to see glimmers of hope on the horizon. Don’t ignore the red flags and be tempted into a short-term fix which could have a negative lifelong impact.”
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