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The Financial Conduct Authority and other regulators are warning that rising levels of vulnerability caused by the coronavirus lockdown could see more savers targeted by scammers as concerns about finances increase.

The FCA has teamed up with the Pensions Regulator and the Money and Pensions Service to urge savers to not make any rash decisions about their pension in response to the Covid-19 crisis.

The regulators said fears over the current state of the financial markets and household income could make pension savers more vulnerable to scams as fraudsters lure vulnerable people in with ‘early access’ pension offers.

Coronavirus-based investment scams have already been reported to Action Fraud, with scammers encouraging people to take advantage of the current downturn.

People have been warned to check the firm they are dealing with is authorised and should walk away from ‘too good to be true’ offers as well as any contact from out of the blue. 

The regulators have told savers to visit the Pensions Advisory Service website for guidance before making any decisions about their retirement savings. 

Savers should also visit the ScamSmart website to learn how to protect themselves from pensions scams, including those who have already retired and are thinking again about their options.

The FCA said the coronavirus outbreak has had an impact on all kinds of companies, including those listed on the stock market. As a result, markets have been volatile and are likely to remain so for a while.

This can have an impact on pensions, causing additional worry for savers, which could see fraudsters trying to take advantage of this situation.

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