Vulnerable pensioners warned of scammers that 'ruined my life' with malicious trick

Many pensioners have been warned that pressure from the cost of living crisis could make them an easy target for scammers.

Such scammers often try to deceive vulnerable people to hand over large amounts or even all of their pension savings. Research from the City regulator suggests that the current financial struggle experienced throughout most of the UK is forcing pension-holders to be less careful with their savings.

According to the research, a quarter (25 per cent) of people surveyed said they would consider withdrawing their pension savings earlier than originally planned to help cover cost of living finances. The Financial Conduct Authority (FCA) warned that scammer use 'misdirection' tactics to deceive victims - such as promising them a better lifestyle in the future.

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If a consumer falls for one of these scams - and deals with an unauthorised firm - they will not be protected by the Financial Ombudsman Service (FOS) or Financial Services Compensation Scheme (FSCS). The FCA surveyed more than 1,000 people aged 40 and over with workplace and private pensions.

It discovered that more than two-fifths (44 per cent) would take up the offer of a "free pension review" - this is despite the fact that such an offer is a tell-tale sign of a potential scam. Pension-holders may be made more vulnerable to these scams due to concerns about not having enough money to last throughout the whole of their retirement.

Scammers often attempt to reassure their victims by getting in touch out of nowhere and may even show them third-party verification to dispel fears of legitimacy. More than half (54 per cent) of those questioned by the FCA said they