Local independent financial adviser, Becky Hammonds of Willow Financial Solutions, explains how the introduction of a new law will protect savers from financial scams:
The UK is to ban all cold calls selling financial products as part of a national crackdown on scams.
Unsolicited calls offering any financial product will be covered by the ban, with a view to stopping fraudsters selling sham insurance products or cryptocurrency schemes.
Pension savers and investors have been on the receiving end of scammers for a considerable time.
A common scam came about as a result of the unprecedented cost of living crisis when a growing number of pension savers looked to take cash sums from their pension and unscrupulous pension scammers, quick to spot an opportunity, began haranguing these people in an effort to capitalise on their misery.
Now, a new blanket ban on cold calls selling financial products, including legitimate callers, will bring this unscrupulous practice to an end.
Last summer, 41 million people were targeted by suspicious calls and texts, according to media regulator Ofcom.
The government said the blanket ban on cold calls selling financial products would cover legitimate calls as well.
This will mean that anyone who receives a call trying to sell them products such as cryptocurrency schemes or insurance will know it’s a scam.
Exactly which financial products will be covered will be decided after a consultation, with the ban expected to be brought in this summer.
Until then, consumers should beware and avoid providing any details to callers.
The scammers’ aim is to misdirect pension savings away from the pension holder.
Remember that many scammers are sophisticated and appear professional in their approach with fake websites and fake testimonials. They will also use any lack of knowledge on the consumer’s part to their advantage.
If you need advice on your pension savings or investments, make sure that you seek advice from a qualified individual.
For pensions and investment advice contact Becky Hammonds on 07969 269677 or email becky@willowfs.co.uk
