Money grabbers

Pension scams

Pension scams are designed to persuade you to move funds from your pension into fake investment accounts. This type of scam is more common now that people can access their pension from age 55. If you're under 55, you might be approached by someone promoting the benefits of early pension release schemes and encouraged to access your pension early. The scammers may tell you to transfer your money into an overseas scheme or try to sell you a one-off investment opportunity. Once the money is transferred, the scammers could steal your pension funds. Early pension release schemes are not authorised by HMRC and withdrawn funds could be charged at anything from 55% to 70% in tax. If you’re considering entering a scheme to access your pension before 55, the Financial Conduct Authority (FCA) recommends seeking professional advice.

How to protect yourself

Pension cold calling is banned by the FCA. If you’re contacted out of the blue by phone, email or text message by someone you don’t know, it’s probably a scam. If you’re considering an early release pension scheme, it’s a good idea to get independent financial advice from a regulated firm.

What to do

Firms that are regulated by the FCA are unlikely to pressure you into making a decision. If they do, you should report them to the FCA straight away. You can check if they’re regulated by searching the Financial Services Register.

If you think you’ve become the victim of a pension scam, report it to Action Fraud on 0300 123 2040 or at actionfraud.police.uk.

Investment fraud

If you get contacted with an investment opportunity that seems too good to be true, it might be a scam. You might be promised you’ll make money on ‘unique commodities’ like wine, land banking, carbon credits, diamonds and graphite, which may turn out to be worthless.

How to protect yourself

No one can guarantee you’ll make money on an investment. Reputable firms especially will never promise that you can. Protect yourself by not making hasty decisions about investment opportunities you don’t know anything about, which might turn out to be fake.

What to do

Search the Financial Conduct Authority (FCA)’s list of registered companies to see if the company is real and seek financial advice from a regulated firm. You can also report the company to Action Fraud on 0300 123 2040 or at actionfraud.police.uk if you think you've been scammed.

Cheque fraud

Cheque fraud can involve altering or tampering with a cheque, counterfeit cheques that look real, forged cheques, which are genuine but stolen, bounced cheques and even invisible ink.

How to protect yourself

Only accept cheques from people you know and trust, and ask for a different method of payment if it involves a lot of money. Use a pen when writing a cheque and put a line through any empty spaces.

What to do

Contact your bank or building society straight away on a number you know if you think you’re a victim of cheque fraud. You can also make a report to Action Fraud on 0300 123 2040 or at actionfraud.police.uk.

Money mules

Have you been told that you can earn easy cash by moving unknown funds through your savings account? Or have you been asked to open a savings account in your name that will be operated by a third party?

If you do this, it’s money laundering. And you’ve become what is known as a “money mule.”

Acting as a money mule can lead to long-term consequences if you’re caught, even if you didn’t know where the money was coming from or is going to. Your savings accounts will be frozen or closed, and you could end up serving prison time.

Money laundering is used to hide money earned through criminal activity. And it funds serious crimes such as terrorism, proliferation financing, drug trafficking and people smuggling. Getting involved with these people could put you, your savings and your family at risk.

How to protect yourself

• Be suspicious and trust your instincts – if it sounds too good to be true, then it probably is.
• Financial Institutions, genuine businesses will never ask you to do this.
• Never open a savings account in your name for anyone else.
• Never disclose account details and passwords to anyone else.
• Remember - if a criminal convinces you to make a withdrawal to give to them, it may be difficult or impossible to recover your money.

You can read more about protecting yourself on our keeping yourself safe page.

What to do

If you think you know someone is recruiting money mules, you can protect victims by reporting them. Call local police on 101 or 999 in an emergency.

If you prefer not to give your details to the police, you can contact the independent charity Crimestoppers anonymously online or by calling 0800 555 111.