Staying scam-free: an essential guide to financial fraud prevention

Financial fraud: frequently asked questions

• What should I do if someone is discouraging me to seek professional advice?

  A warning sign to look out for is being discouraged from seeking professional financial advice or talking to Pension Wise or The Money and Pensions Service. Report the person if they are doing this.

• What is Action Fraud Alert?

  Action Fraud Alert is a free service provided by the National Fraud Intelligence Bureau. The service alerts you about new types of crime or those which are increasing in their severity. If you sign up to Action Fraud Alert, you will receive those alerts which are relevant to you.

• What is the FCA register?

  Be careful if you’re contacted by somebody who is not on the Financial Conduct Authority (FCA) Register. The register is a public record of all the regulated firms and individuals in the financial services industry, including pension providers and investment companies. Be careful if you’re contacted by somebody who is not on the Financial Conduct Authority (FCA) Register and they are trying to sell you an investment, insurance or other financial services product.

• I've been advised to cash in my pension in one go, what should I do?

  There can be significant tax implications if you choose to cash in your pension in one go, so check the tax position before you make any decisions. Tax calculators are available online including our Pension tax calculator. Check your adviser or firm is on the FCA register.

• What should I do if HMRC have contacted me about a tax refund?

  HMRC will never contact you by email, phone or text informing you of a tax refund, so simply delete or ignore any contact made this way – HMRC will only contact you via post.

• What to do if I am encouraged to withdraw a large sum of money?

  Be extremely cautious around any recommendations to take a large amount of money, or your whole pension pot, in a lump sum. Be careful if you’re encouraged to invest the money in unregulated, unusual opportunities, for example, overseas property, forestry, car parking or storage units. And be very wary of unsolicited offers of ‘amazing' investment returns.

• I've been sent an offer to access my pension early?

  If you receive an offer to help you access your pension savings before age 55, for example through ‘pension loans’ and ‘free pension reviews’, don’t engage. It’s never usually possible to access your pension before age 55, except in rare situations, for example, if you are very ill.

• How can I check and identify known scams?

  Check Action Fraud Alert, the service alerts you about new types of crime or those which are increasing in their severity. If you sign up to Action Fraud Alert, you will receive those alerts which are relevant to you. Or the FCA's ScamSmart tool for known scams and use the tools to help identify a potential scam.

• What are the main signs of financial fraud?

  In a nutshell the main signs are:

  • Unexpected charges or withdrawals
  • Missing bills or statements
  • Suspicious emails, texts, calls and communications
  • Errors on statements and reports
  • New friendships or romantic relationships with people you met online or via email or phone that later ask you for money, often using high-pressure scenarios and emotional manipulation
  • Investments or other financial products, often with too good to be true returns or flexibility being sold by unregulated brokers or firms

  See our article for more warning signs of financial fraud.

• How can I protect myself from financial fraud?

  There are lots of ways, and our page on staying vigilant against financial fraud can help. The main points to remember are:

  • Regularly monitor bank statements
  • Check you are dealing with regulated financial services firms for investments
  • Be cautious of giving money to people you have never met
  • Ask for help if you feel you are being pressured or coerced into making a financial decision
  • Use strong, unique passwords
  • Enable two-factor authentication 
  • Avoid sharing personal details 

• What to do if I suspect financial fraud?

  Report the activity to your financial services provider, Action Fraud or the FCA (where it relates to investment scams or practices in the regulated financial services sector). If you suspect financial fraud, use the details above on this page to report it immediately. Remember:

  • Contact your bank or provider to advise them
  • Report the Fraud to the relevant authority: FCA, Action Fraud
  • Freeze any compromised accounts
  • Key a record of the suspicious communications where relevant

• How can financial fraud affect me?

  Financial fraud can affect you on lots of different levels:

  • Loss of money
  • Damage to credit score
  • Emotional stress
  • Legal implications
  • Wasted time resolving the issue