Newly-Installed Laws Could Fine Pension Fraudsters £500,000

In response to an increasing number of people using the new pension freedoms from April 2015, about eight scam calls are made every second to UK retirees with five being answered and scammed. The UK loses about £19m to fraudsters.

The promise of a higher pension value and possible payout in the future is alluring to anyone looking for a big break. Unfortunately, scammers will impose their self-administered pension scheme — a huge tool in their fraud activities — to steal money out of you.

The calls of these scammers had “plagued” pensioners for years. The new ban ensures that anyone using calls to scam retirees would receive fines with a £500,000 maximum.

Chancellor Philip Hammond is encouraged to go one step further in extending the ban from phones to electronic communications including email and text messages.

Police electronic enforcers have powers to take down fraudulent websites. But due to restrictions, authorities are unable to take down foreign-hosted websites.

From the pensions freedom granted by the UK government, retirees can cash in their pension pot from the age of 55 years old. Retirees had come out to withdraw an average amount of £20,000. The huge amount became fraudsters’ and scammers’ targets.

Their modus begins with reminding the retiree that a “free” pension consultation awaits them. Some use the “government card” — posing as a government agent and asks retirees to pay their fees using cash vouchers mailed to an address.