Pension scammers are setting up limited companies under false names to try to avoid the HM Revenue & Customs (HMRC) fit and proper person rules.
Companies House says the number of pension scams is rising and fraudsters are stealing identities to trick retirement savers out of their cash.
Under new rules, anyone involved in pension liberation is barred from running a pension scheme by HMRC.
Pension liberation is a process that allows retirement savers under 55 years old to access their pension cash early.
Although this is not illegal, the fraudsters offer unregulated investments, free pension reviews and promise a cash bonus to retirement savers as an incentive to switch their money into one of their schemes.
Pension liberation fraudsters
“We have had numerous reports of companies set up under individual names for the purpose of establishing pension liberation schemes,” said a Companies House spokesman.
“If you find a company has been set up in your name, don’t just close it but take legal advice.”
Companies House has also issued a list of warnings about pension liberation firms –
- Do not follow up inquiries from anyone you do not know and trust
- Do not share any personal information with cold-callers
- Do not sign any paperwork
- Check the adviser and pension scheme out with The Pension Regulator
Companies House is expecting an influx of scam pension liberation firms as the new fit and proper person rules came into force on September 1, 2014.
The rules stop anyone involved in pension liberation, tax avoidance schemes or who has been disqualified as a company director from any involvement in managing a pension scheme.
Cold calling crooks
Other scams involving companies are high on the Companies House watch list.
The spokesman warned about bogus emails purporting to come from Companies House that are phishing emails designed at extracting personal data for use by fraudsters.
Scammers are also cold-calling directors and company secretaries claiming they are from Companies House and requesting financial information and details of web-filing authentication codes.
Other crooks are promoting their services on web sites as ‘licensed and bonded’ to hold escrow accounts for clients.
“All these ploys are just scams aimed at stealing identities or financial information for fraud,” said the spokesman. “We never email or cold-call customers and anyone with any doubts about who is contacting them and why should contact us direct.”
