A £500,000 penalty could be on its way to companies making nuisance cold calls as the government clamps down on unsolicited contact with pensioners.
A new ban that stops companies making cold calls to pensioners could see illegitimate businesses being fined up to £500,000 in an effort to protect those older members of society from predators hunting their savings.
There are eight scam calls taking place at any given time according to recent research conducted by the Money Advice Service. This amounts to a total of 250 million calls per year, each of which could be a potentially devastating blow to those that receive them.
Pensioners are usually the worst hit. The Financial Conduct Authority (FCA) estimates that an average of £91,000 is stolen from those that fall prey to a scam.
Scammers choose to target these more vulnerable members of society as they’ve had the most time to develop a large pot of savings. A pension scam usually starts with a cold call and can end up ruining the victim’s finances.
Experts warn that if you experience unsolicited calls that are offering free pension reviews, utilise high-pressure sales tactics, and attempt to coax your money out of you with opaque investment structures that you may be being targeted.
If you suspect that a caller is trying to swindle you, ensure that they are either FCA authorised or an occupational or personal pension scheme manager or trustee before entertaining the conversation further.
Economic Secretary to the Treasury, John Glen, has said: “Pension scammers are the lowest of the low.
“They rob savers of hard-earned retirement and devastate lives. Cold calling is the pension scammers’ main tactic, which is why we’ve made them illegal.
“If you receive an unwanted call from an unknown caller about your pension, get as much information as you can and report it to the Information Commissioner’s Office.
“I’d also urge all savers to seek independent advice.”