Pensioner loses more than £75,000 to terrifying cold call

Scammers are preying on the emotions of parents Pension scammers are ‘selfishly and shamelessly preying on people’ amid a retirement savings crisis, with one man losing all his life savings. Martin is a pension scam victim, who transferred his pension money from the UK to Spain after responding to a cold call. Martin described the experiences as leaving him ’embarrassed, ashamed, and like a total failure’. He was promised £3,000 a year tax-free on his £63,000 initial investment, almost all his life savings. Things went wrong almost immediately, and while he was informed his initial losses were normal, they just continued. Prior to being scammed, Martin took an early retirement, and three months in he realised he’d been scammed, meaning his six-year plan until he got his state pension was affected. The initial pension scam had further knock-on effects, as he used £75,000 of his £85,000 leftover savings to invest in a hotel business, which was later found to be a scam too. Scammers are preying on the emotions of parents The second scam caused by the first depleted them of essentially all their savings and meant that Martin and his partner ended up on universal credit, which they had never been on before. In the Transparency Task Force report, Martin explained he feels as if he’s been ‘stabbed in the back’. His confidence has been knocked, and he feels fatalistic over his future decisions, describing having to think multiple times over the most minor things. The stress, dents in his pride, self-esteem and frustration towards the people who did this to him are difficult for him. Pete Glancy, head of policy at Scottish Widows said: ‘[Scammers] can pressure pension savers into making snap decisions over the phone that cause them to give up their personal information – and their money. ‘Pension scammers are selfishly and shamelessly preying on people amid a retirement savings crisis that already threatens to leave people unable to afford the basics in later life. Britons are urged to remain vigilant online or when picking up random calls ‘If you receive an offer that sounds too good to be true, then it probably is. You can always hang up the phone, try to find out more about the organisation contacting you, and speak directly to your pension provider if you’re still unsure.’ The financial losses suffered by pensioners have reached new highs, with nearly £460 million lost in 2022 alone—an increase of 10 percent from the previous year. Ariana Bago, fraud analyst from Proxyrack explained it is essential to equip pensioners with the knowledge and strategies necessary to recognize and avoid potential traps. Ms Bago suggested that if something seems too good to be true it probably is. She said: “Scammers may contact you and claim to know about loopholes that can help you get more than the usual 25 percent of your pension pot tax-free. However, such promises are often false and designed to deceive you.’ SUBSCRIBE Invalid email We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info Romi Savova, PensionBee CEO, commented on the rise in pension scams stating the ‘common myth’ among consumers is that pension scammers only target the most vulnerable in society, such as the elderly and those in cognitive decline, but this could not be further from reality. She said: ‘As scammers continue to evolve their methods and become more sophisticated, anyone can fall victim, and with pension scam victims having an average of £75,000 stolen from them, it’s vital that everyone’s able to recognise the common signs of a scam.’ She gave these tips to help protect against scams: Ignore the pressure to make an immediate decision: A common tactic employed by scammers is to put an expiry date on an investment opportunity, sometimes offering a discount or bonus if a saver invests quickly. Savers should therefore never feel pressured to make up their minds quickly in order to meet a deadline or be afraid to walk away from a deal, as a reputable financial services professional would never demand this. Trending