Stay alert for pension scams
Pension scams come in many shapes and sizes, but the result is the same – you could lose your life savings. Action Fraud reported in 2021 that, on average, victims of pension scams each lose over £50,000; while the Financial Conduct Authority and the Pensions Regulator now put this figure at £75,000.
Unfortunately, pension scams are getting ever more sophisticated. The use of artificial intelligence (AI) by fraudsters is making scams more convincing and harder to spot. While the methods can vary, the purpose is always to obtain personal information and money.
Examples of AI scams include:
- deepfakes (a video where a person is digitally manipulated to look like someone else)
- voice cloning (where victims are convinced they’re having a genuine phone conversation with a person)
- chatbot phishing (with text that replicates the tone and coherence of legitimate messages).
Look out for the small details on videos, particularly in people’s faces. Note any inconsistencies and discrepancies and pay attention to tone of voice, as AI scams usually lack emotion.
You can find more information about spotting pension scams and fraud at:
moneyhelper.org.uk/en/money-troubles/scams/how-to-spot-a-pension-scam