It’s more important than ever to be wary of pension scams, as warning flags have reached a 12-month high, according to new figures.
Scam warning flags show up in cases where a member has requested to transfer their pension to a scheme that’s a potential scam.
Figures, from the scam flag index of pension consultancy XPS Pensions Group, show almost two in three (65 per cent) potential pension transfers raised at least one scam warning flag in February. This is the most that warning flags have been raised in the past 12 months, increasing from one in two (50 per cent) in January.
Is pension scam awareness increasing?
With the rise in scams, it seems people may also be thinking twice before transferring their pension. The consultancy reports a fall in people transferring their pension over the last four months – decreasing from 59 out of every 10,000 members in November 2021, to 40 members in February 2022.
If you’re looking to transfer your pension, make sure you can spot the signs of a potential scam first. Read our article, 7 Top Tips to Avoid Being the Victim of a Pensions Scam to find out more.
You’ll also be pleased to hear that, at LPPA, we are doing all we can to help put a stop to pensions scams. We have joined the Pension Scams Industry Forum. We’ve even signed a pledge to help combat them.