The Insolvency Service has today revealed it has wound up 24 companies involved in pension fraud since 2015, representing 3,750 individuals and £202million in contributions.
You can read the full Insolvency Service release here: https://www.gov.uk/government/news/protect-your-pension-pots-from-investment-scams-and-negligent-trustees
Tom Selby, senior analyst at AJ Bell, comments:
“It is horrifying that thousands of retirement savers have fallen victim to cruel retirement scams in recent years. Although it is good news a number of the companies involved have now been wound up, this is likely to be the tip of the iceberg when it comes to pension fraud.
“Some victims will be unaware they have been duped for months or even years, while others will simply be too ashamed to come forward and report what has happened. Furthermore, it can take a long time for authorities – which are always limited by resource - to build a case against firms involved in scam activity.
“The Government has made a start in tackling pension fraud by banning cold-calling. However, these latest figures are just another reminder of the tragic cost of retirement scams, and the protection of savers must remain front-and-centre for policymakers both in Whitehall and at regulators.
“A huge part of this is ensuring consumers are made aware of the risks of pension fraud and the tell-tale signs of a potential scam. The FCA’s ScamSmart initiative, which included a hard-hitting TV campaign, has made a good start in building awareness and this focus must continue now the cold-calling ban is in place.”
