The PSAG is a is a multi-agency taskforce working together to tackle pension fraud and includes representation from the Department for Work & Pensions, Financial Conduct Authority and The Pensions Regulator, amongst other government bodies.
PSAG focuses on education, prevention, and enforcement and protects pension savers by raising public awareness, improving understanding and intelligence to shape policy, supporting enforcement through shared intelligence, proposing legislative and regulatory actions, as well as promoting non-legislative good practices and providing support for scam victims to reduce harm.
One of their latest initiatives, reported earlier this year, was the development of an AI tool to detect and shut down fraudulent pension scam websites. Using this tool, they’ve reviewed 830 sites, taken down 29 high-risk ones, and referred 94 to agencies like City of London Police. This the latest sign of the increased application of AI technologies to combat fraud and other crime pre-emptively.
When advising clients on a Defined Benefit transfer, Grove always carry out full identity checks and ensures compliance with anti-money laundering legislation. Grove’s fully qualified advisers will also assess the suitability of both the receiving pension scheme, and investment choices, even if the client intends to ‘self-invest’. Where a lump sum is being released, we will also always discuss the intended use of these funds – particularly if the intention is to re-invest these funds.
How to Avoid a Pension Scam
- Pension scams are becoming more sophisticated with many scammers appearing to be legitimate companies. Here are a few points that can protect you from being scammed:
- Check the company is regulated and registered with the FCA. Check that their company is listed on the FCA Financial Services Register using their unique FCA reference number (e.g. Grove is 465051)
- Beware of promises of high investment returns or a lack of standardised warnings.
- If you are worried your employer is going out of business make sure their pension scheme is registered in the UK and covered by UK regulations. If your employer operates a Defined Benefit pension, the scheme will only be protected by Pension Protection Fund if it is registered in the UK.
- Do not rush into a decision. A genuine pension transfer adviser will not pressure or rush you into making a decision. If you are being pressured or rushed into making a “Limited Time Offer” it will more than likely be a scam.
- Cashing in a pension before 55; if you are offered to release cash from your pension before you reach the age of 55 it is a scam (unless you have serious health issues). You can normally only cash in a pension at 55.
- Do your research. The government has lots of advice on what you can and can’t do with your pension. Check the governments MoneyHelper Pensions and retirement website if you are at all unsure about the advice you are being given.