Almost all of us are still failing to spot scam signs
New research reveals that we're not as good at spotting scams as we think we are. Take our quiz to find out if you can outsmart a scammer.
A new study shows that even though most of us think we can spot a scam, we're still falling for the major signs.
Worrying research from Citizens Advice found that nine in 10 people miss common pension scam warnings, like impossibly high investment returns and dubious offers of free financial advice. Three in four (76%) respondents said that they thought they could identify a pension scam, but a tiny 12% could actually do so when the scams were right in front of them.
Respondents were faced with three different pension deals and after an average of one minute and seven seconds examining them, the majority of them chose the offers which contained the types of phrases commonly used by fraudsters.
The research highlights how scammers are moving away from pension liberation schemes offering high rewards, towards free pension reviews and advice to trick unsuspecting savers out of their pension pots at an early stage.
Vulnerable savers
People are particularly at risk of scams from unsolicited phone calls, post and emails which may catch them off guard. As many as 10.9 million people have received such contact about their pension in the past year. A substantial 3.8 million of them were over 55 and eligible to use pension freedoms; Citizens Advice says that this age group are 70% more likely to seek out advice from the organisation.
Almost two thirds (64%) said they would consider an unsolicited offer about their pension, and many would only consult informal sources about whether it is genuine.
When asked how they would check whether or not an offer is legitimate, 45% said they would look up a company’s website and 36% would discuss it with family.
Gillian Guy, chief executive of Citizens Advice said: “It’s difficult for consumers to stay ahead of pension scams as they evolve. Many scammers use professional looking websites and leaflets to fool their victims into signing up to free pensions advice or cold call with offers of unusually high investment returns.
“If you are over 50, Pension Wise guidance can equip you with the knowledge of what to look out for to avoid falling victim to scams.”
Now it's your turn. Take the quiz below and see how you would cope with a pension scammer. If you answer a question correctly, the bar will turn green.
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