Over the years, scams including pension scam activity continue to rise with scammers looking to take advantage of people’s fears and uncertainties by making false promises with unrealistic guarantees.

With the cost of living still high and financial pressure rising for many, people are increasingly vulnerable and scammers are taking advantage. In 2022, 5.3 million fraud offences were committed – up 17% from the previous year*. It’s as important as ever that you can identify the signs of a scam and you know how to protect yourself.

Common scams to look out for

Rebate scams – you may get a text or email claiming to be from your local Council, Ofgem or HM Revenue and Customs (HMRC). These usually include fake links to websites and will ask you to input your personal information (such as bank details) to claim rebates for Council Tax, Income Tax or energy costs. The real HMRC will usually contact you by post.

Postal scams – you will usually receive a text or email from a courier firm or Royal Mail asking for additional money for a parcel you’ve ordered. The link usually takes you to a cloned website and will ask you to input personal information (including bank details). Royal Mail will never send you a text or email.

Bank scams – these calls usually involve asking you to transfer money into a different account. You’ll be given new bank details and asked to transfer your money quickly to save it from being ‘hacked’, stolen or compromised another way.

Computer scams – you may receive cold calls from someone claiming to know your computer has a virus. They’ll ask for access to your computer to remove the virus but once you allow them access, they may be able to take personal information stored on your computer, including bank details.

Pension scams – Scammers often offer deals that promise high or guaranteed investment returns. No investment returns are ever guaranteed. If it sounds too good to be true, it is. It’s always safer to take advice when making big financial decisions, especially when they involve your pension. MoneyHelper offers free guidance online and you can find a local independent adviser at Unbiased.

These aren’t the only scams to be on the lookout for, but these are the ones that are being used frequently to catch people out. To find out about other types of scams, visit the MoneyHelper website.

Want to keep up-to-date on the latest scams and warning signs to look out for? Sign up for free Which? Scam Alerts today.

Beware of scammers pretending to be family

Criminals are now pretending to be members of the family – typically children or grandchildren – and trying to scam parents and grandparents into transferring money to them.

What to watch out for

It can all start with a call, a text or a message on social media. Often, it will start with a simple ‘Hi gran’ and it may come from a number you don’t recognise. The ‘family member’ may try and justify this by saying that their phone has been lost or stolen so they’re using a friend’s.

Next they’ll ask you for money. This could be because they need to replace a lost or stolen phone, but often it will be to help settle an unpaid bill. Some scammers even pretend that they’ve been arrested and need help to pay their bail – they may also put their ‘lawyer’ on the call too to make the call seem genuine and even more urgent.

The scammers will then provide you with bank account details so you can make a payment. If you happen to know your family member’s bank account details and you don’t recognise the ones given to you by the scammer, they’ll simply say that they’ve given you the payee’s details so the money can go directly to them.

We don’t want you to be caught out so here’s a few tips to help you stay safe:

How to beat the scam

• If something doesn’t look or feel right, always challenge it
• If you receive an unexpected payment request from anyone – even someone who says they’re a family member –get in touch with them and check it’s genuine
• Don’t be taken in if the scammer knows lots of details about you and your family – personal information is widely available online, especially through social media, and it can be bought from other scammers

Pension and investments:

• Know who you’re talking to – genuine organisations won’t contact you out of the blue. Even if you’ve approached an adviser directly, you should still check their credentials. Use the IFA register to check that they are registered. You can also confirm that an individual adviser definitely works for the company they say they’re part of by checking the details on the register to confirm.
• Know your pension – take time to understand your pension options and the associated rules. Pensions aren’t usually accessible until you’re 55 (set to increase to 57 from 2028 - read more about the Scheme's normal retirement age), but a common scam involves fraudsters claiming they can help you access your benefits earlier. Heavy tax charges can apply if you claim your pension earlier than the minimum retirement age, so make sure you understand the options available at retirement and familiarise yourself with the rules that HMRC sets out.

And finally… take your time. Don’t feel rushed or pressured into making a decision or to take action. Read and digest all the information you’re given and take the time to speak to a regulated financial adviser if it relates to pension savings or investments.

What to do if you think you’ve fallen victim to a scam

First, contact your bank to alert them and see if they can halt the payment, or help in any other way.

Get in touch with the Government-backed financial-guidance service, MoneyHelper, to see if they can help you get your money back. You can reach their financial crimes and scams unit on 0800 015 4402.

You can find out more information by going to the ScamSmart website – an FCA-regulated hub for information on how to avoid investment and pension scams.

You can report a scam to the FCA by contacting their Consumer Helpline on 0800 111 6768 or by using the reporting form.

*Statistics from The Crime Survey for England and Wales for year ending March 2022 and versus year ending March 2021.