Pensions - Articles - Do not rely on transfer ban to protect members from scammers

 Scams are on the rise in the current climate with scammers looking to exploit people’s fears around their personal financial security. Scammers are also looking to sway members with talk of a once in a lifetime chance to invest in the stock market at current levels. This means vulnerable people could end up losing their pension. Despite the country staying at home, scammers are still getting to members through social media.

 Margaret says pension trustees should delay and engage rather than stop paying transfer values. The best way to combat this is for trustees and employers to engage with and talk to members looking to leave their pension scheme. Delaying transfers to be able to speak to members about the risks is the best defence. A blanket ban on transfers, however, may only lead to scammers moving their attention to pensioners both as they retire and even those in payment.

 Wayne Segers, Head of Pensions Solutions at XPS Pensions said: “It is important with all that is going on that administrators are able to integrate conversations with members into the transfer process. This will protect members from bad choices. We have focused in ensuring the XPS anti-scams team is not only able to operate effectively in the current climate but can expand to manage a larger expected number of cases.”
    

 Third edition of XPS News