Consumer watchdogs have warned expats and other retirement savers that a cold-call offering a free pension review is from a crook attempting to steal their money.
The warning came as The Pension Regulator revealed detectives are investigating several pension schemes linked to cold-calling.
The TPR feels some advisers are defrauding retirement savers when they persuade them over the telephone to switch their funds into badly-run scheme promising high returns and cash incentives that break the rules.
As part of the police investigation, TPR has also appointed independent trustees to run Alderley Wealth Management pension scheme due to concerns about the management of more than £3 million of investments.
The regulator is concerned some members requested their funds to be invested in low-risk UK-based investments. Instead, funds were placed in high-risk and illiquid investments overseas.
Reputable businesses do not cold call
Payments are also suspected to have been made to advisers introducing clients – some of whom TPR believes had used cold-calling to target pension holders.
Mike Birch, TPR’s Director of Case Management, said: “Cold-calling pension holders isn’t illegal yet, but no reputable business does it.
“We would urge anyone to contact Action Fraud if they are phoned and offered the chance to transfer their pension.
“Our message is simple – a cold-call about your pension is an attempt to steal your savings.”
TPR has worked closely with police over recent months.
Search warrants were executed at four homes and businesses in Newcastle, Sunderland and Nottingham in January.
Fraud arrests
TPR teams also inspected a business in the North East in connection with the investigation, before requiring information from the business under the Pensions Act.
Two men and a woman have been interviewed by police under caution on suspicion of fraud offences.
TPR is the regulator of work-based pensions in the UK.
The watchdog says anyone receiving a cold call about their pension should report the contact to Action Fraud by phoning 0300 123 2040.
TPR also advises anyone considering a pension transfer should first visit pensionwise.gov.uk for free information about their options.
According to police, fraudsters steal at least £42 million a year from pension transfers – and most cases start with a cold call, text, or email promising a free pension review.
