SCAMS
“SCAMS ALWAYS WORK
BY PRESSURING YOU.
IF SOMEONE TELLS
YOU TO DO SOMETHING
IMMEDIATELY WITH
YOUR MONEY, TAKE A
STEP BACK”
tax year, there is nothing in the
financial services industry that you
need to rush for.”
Wise says that conmen will also
prey on the fact many people do
not want to come across as rude.
“When someone is on the phone
to you, asking if you can hang up
on them can feel awkward – and
there is no doubt it is hard to do –
but you need to do it.”
“If they try to pressure you, tell
them you’ll get back to them and
ask for their name and address –
this is the worst possible scenario
from a scammer’s point of view
and they will invariably hang up.”
WALK AWAY
BE ON YOUR GUARD
“Always be on your guard and
do your research before you do
anything,” he advised.
“Many people we have spoken to
say someone has contacted them
claiming to deliver something that
sounds too good to be true, such as
guaranteed returns of 10 per cent a
year – so this should immediately
set alarm bells ringing.”
He adds another common theme
involves being told to make a
decision straight away.
“Scams always work by
pressuring you. If someone tells
you to do something immediately
with your money, take a step back.”
“Unless it is the end of the
trustnet.com
“My advice is always to walk away,
go and have a think about things, do
your own research, speak to friends
and family – this is something we
even tell our clients to do after
talking to us.”
Clive Collins, director at
financial planner McCarthy Taylor,
says it is important to ensure
anyone you talk to about your
pension works for a reputable
company.
“First of all, check the FCA
register to make sure they are a
bona fide firm. You can either ask
for their FCA number – which
should be on all their literature –
or you can go on the FCA website.”
“Check they are a chartered
firm to ensure the quality of their
advice reaches a certain level. They
should have a current statement
of professional standing to show
they are approved by the Personal
Finance Society.”
“You can also go on the
Pensionwise website [www.
pensionwise.gov.uk/].”
You may wish to pass on this
advice to your friends and loved
ones, because finding out they
have been a victim of one of
these scams can be almost as
heartbreaking as being defrauded
yourself.
This was a situation Chris Spear,
managing director of advisory
firm Spear Financial, almost found
himself in recently.
“A neighbour knocked on my
door two weeks ago and asked me
to look at something,” Spear said.
“He was in the process of
transferring his pension out of
a final salary scheme into an
overseas one, which promised to
put the money into a property
fund in the UK and said it
guaranteed 10 per cent returns a
year.”
WATCH OUT FOR PREDATORS
“He should have come to me weeks
earlier, but he had already started the
transfer of funds,” Spear added.
“This was really sad – he was a
working class guy who had worked
all his life and his pension pot was
only £60k.”
Fortunately, in this case the story
had a happy ending.
“I managed to ring up his
pension scheme’s trustees and
they stopped the transfer,” Spear
continued.
“The trustees were actually
very good – they kept sending
him notices saying ‘watch out for
predators’ and that’s what made
him come to me.”
“If you get anyone making
those sorts of promises, speak to a
financial adviser – most of them
won’t charge for a preliminary
chat. Most of us aim to build
relationships with clients – we are
not after a quick buck.”
Spear has one final piece of
advice that can stop most scams in
their tracks straight away.
“Do not respond to cold calls,” he
finished.
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