Victim Secures £24,000 Compensation for Lost Pension in Sham Investment Scam; Potential £80million in Restitution for Millions
Headline: Victims of Pension Scams Urged to Check Compensation Eligibility as £81.5 Million Returned
In a joint crackdown by The Pensions Regulator, the Fraud Compensation Fund (FCF), The Pensions Ombudsman, and Dalriada Trustees, over £81.5 million has been returned to 58 schemes that were hijacked by fraudsters. This follows a High Court ruling in 2020 that confirmed occupational pension schemes set up by scammers could be eligible for compensation.
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One such victim, Stephen Grimes, a 59-year-old man from Exeter, lost two frozen pensions worth £27,000 in a fraudulent investment scheme. Grimes was offered a £4,000 cash incentive and higher returns, which led him to invest in the scheme. However, he discovered within months that he had been conned, as part of a scam that tricked hundreds of savers. Grimes has now received a compensation of £24,000 from the Fraud Compensation Fund (FCF).
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Scams usually begin with unsolicited contact. If contacted unexpectedly about a pension, savers should stop, think, and check who they are dealing with. Established firms will not give a short deadline to make decisions about pensions. Be wary of jargon, such as "pension liberation" and "cash advance," used by scammers. Check who you are dealing with by searching the Financial Conduct Authority (FCA) Register at fca.org.uk or calling its contact center on 0800 111 6768 to see if a firm is authorized.
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If you believe you have been scammed, contact Action Fraud immediately. Legitimate providers will not contact you out of the blue. Ignore unexpected pension offers made online, via social media, or over the phone. Never click on links to websites or social media ads offering pension advice or an investment opportunity without checking them first.
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The FCF is urging savers to check its website to see if their pension scheme is being considered for compensation. More payments are set to follow in 2026 as claims are processed. Authorities indicate that there are likely further victims eligible to receive financial compensation.
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To stay vigilant against fraudsters, seek trustworthy guidance. Find a regulated financial adviser at vouchedfor.co.uk for tailored, personal advice. You can also report scams to the FCA by calling 0300 123 2040 or making a report on its website. If you are over 50, seek guidance from the Government's free Pension Wise service at bit.ly/3O6EaqL. Go to the Government's official Pension Tracing Service at gov.uk/find-pension-contact-details to trace lost pensions.
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Join the Sun Money Chats and Tips Facebook group to share tips and stories. Remember, if it seems too good to be true, it probably is. Stay safe and protect your pension.
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