Fraudsters trying to steal money from people's pension funds are increasingly offering to invest the cash into other scams, says Citizens Advice.

Individuals are typically told they should invest their pension money in fine wines or overseas property. But many of the companies involved are not regulated and are not qualified to give financial advice. It is thought that the fraudsters may be capitalising on the new pension freedoms, introduced in April. Those freedoms allow people over the age of 55 to access their cash, subject to income tax. Citizens Advice - which offers official guidance through Pension Wise - said that emerging scams include:

  • Unspecified financial products. Fraudsters offer to invest pension money in other products, without explaining what those products are
  • Free pension reviews. Fraudsters posing as independent financial advisers offer to visit victims at home, in an attempt to access their pensions
  • Investment schemes. Victims are persuaded to invest money in property, or in fine wine.



"Opportunistic fraudsters are finding new ways to go after people's pension pots, including offering free pension reviews and promising to invest in funds that don't necessarily exist," said Gillian Guy, the chief executive of Citizens Advice...Read more here