During times of heavy market volatility such as the one the market has been experiencing recently, the risk of being targeted by a scammer is higher than usual.
This is largely due to market volatility being very unnerving which can put people in a position where they make bad decisions.
Scams aren’t always obvious though. All types of people are potential targets for scammers, even the financially savvy. So how can you keep your money safe?
Be aware and know the warning signs
Two of the most common scams to be aware of are schemes offering early pension release and free pension reviews. Generally, you can only take money from your pension once you reach age 55. So any scheme offering to help you access your money before this is likely to be a scam. And scams offering free pension reviews are trying to get you to transfer your pension money either into high-risk investments or a scheme that doesn’t actually exist. It is always best to make your financial planner aware if you are considering accessing or moving your pension.
Be wary too of other investment schemes and products promising great returns, or those which use high-pressure sales tactics to rush you into ‘time-limited’ offers. Remember, if it sounds too good to be true, then it probably is.
If you’re in doubt about a company’s legitimacy, check at fca.org.uk/scamsmart. This lists unauthorised firms and individuals which the UK’s financial regulator, the Financial Conduct Autuhority (FCA), has received complaints about.
Stay alert with cold calls and emails
Cold calls have been illegal since 2019. So if you get anyone calling you out of the blue about your pension or other savings and investments, it’s likely to be a scam.
Many scams now involve ‘phishing’ emails that lure you into opening them and clicking on the links they contain. Once clicked, the links can allow malware to infect your devices and steal your personal information.
Stay safe
- Don’t follow links to retailers from social media – enter their URL into your browser yourself.
- Check for a padlock in the address bar and look for any misspellings, additional words, or anything that looks a bit off.
- For retailers you haven’t shopped with before, do some due diligence – check Trustpilot reviews, and look for a head office address.
- Always install the latest updates for your devices, applications and internet security software.
- Read our recent article outling information to help identify and prevent differrent kinds of financial scams and fraud.
If in doubt, contact us first
If you’re in any doubt, or worried about scams, please reach out to your financial planner who will be delighted to help.
The information in this article should not be regarded as financial advice. Information is based on our understanding in April 2025. Investment growth isn’t guaranteed and it’s possible that you could get back less than you paid in.