The police are warning local residents about a new scam that fraudsters use, to con people out of their pension.

The National Fraud Intelligence Bureau (NFIB) was recently alerted to a pension scam, whereby cold callers target members of the public, usually aged between 50 and 60 years old, to release and transfer their pension early.

Suspected firms may offer pension investments in alternative commodities, such as hotel developments or property in Cape Verde, and operate as unregulated collective investment schemes.

Often, the cold calling ‘pension companies’ involved are neither regulated nor qualified to give financial advice, and classify themselves as a ‘trustee’, ‘consultant’ or an ‘independent advisor’ and offer exceptionally high return rates for investors.

Some victims have signed documents that authorises a limited company to be set up using their personal details, including utilising a Small Self–Administered Scheme (SSAS). Whilst SSAS accounts and limited companies are essential for legitimate schemes, the fact that victims are unaware that this will happen suggests that the scheme may not have been fully explained to them, increasing the likelihood that there may be an element of fraud involved.

You can check whether the pension arrangement company is registered with the FCA. Registered companies can be checked using the FCA register online at: https://register.fca.org.uk/

Remember that if the offer seems too good to be true, then it generally is

If you believe that you have been a victim of fraud you can report it online http://www.actionfraud.police.uk/report_fraud or by telephone 0300 123 2040.