The UK Government introduced stricter protection against pension scams. Bans also include the use of emails and texts in private pensions cold calling.
Update: The pensions cold-calling ban takes full effect from 9th of January 2019. Making unsolicited calls about a pension has become illegal this week. Breaking the rules can cost companies a fine up to £500,000.
PENSION COLD CALLING BAN: A change in the rules is to help protect private pension savers. They have seen increased targeting by unscrupulous pension scammers.
The introduction of new measures on pension scams will include:
The Department for Work and Pensions made the announcement. But, it will be the Information Commissioner's Office (ICO) who enforce the new cold calling ban.
Several other measures in tackling pension scammers will become law. Only active companies producing regular and up-to-date accounts can register pension schemes.
Transferring pension pots from one occupational scheme to another will have limits. Thus, trustees need to check their receiving scheme gets regulated by either:
The announcement coincides with the release of some disturbing figures for the government. One report shows pension scammers obtained close to £5 million from January to June in 2017.
Further research highlighted the real extent of pension scamming in the United Kingdom. Gov estimates suggest pension scams and frauds have netted £43 million from 2014-17.
Those who got targeted lost an average £15,000 each. The 'confidence trick' occurs as scammers encourage savers to part with their money.
Promising low-risk and high-return investments is 'standard operating procedure' for these fraudsters.
Ministers gave some reasons behind the ban on pension cold calling emails and texts. The introduction of these tough new measures will punish those who scam.
The figures highlight how private savings are being targeted. Most money gets stolen through elaborate hoaxes. In most cases, the victims have little or no opportunity to rebuild their savings.
The government aims to protect people who have saved for a private pension. Often, it is the biggest lifesaving individuals' make after many years of hard work. Banning cold calling will help to tackle this type of scamming.
It is unacceptable for people to get conned in this way. People work all their lives to accumulate a pension pot. It should not be subject to scams that often leave them out of pocket.
A pension is often the most valuable asset built up after reaching the age for retirement. The government in the United Kingdom is very determined to act. The inclusion of a ban on email and text messages will crack down on scammers. In turn, it helps to protect the country's hardworking savers.
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Government Ban on Pension Scams now includes Emails and Texts