The UK is banning cold callers from selling financial products in a bid to crackdown on scams. The blanket ban – which covers unsolicited calls offering any financial product – also extends to legitimate schemes and investments. According to the government, this means that “anyone who receives a call trying to sell them products such as cryptocurrency schemes or insurance will know it’s a scam”.
According to media regulator Ofcom, in summer 2022, a whopping 41 million people were targeted by suspicious calls and texts. Furthermore, according to new analysis*, one in four people could be at risk of a pension scam.
Research carried out between January and March 2023, found that:
- 17 % of people were told they could achieve higher investment returns should they transfer their pension
- 15% of people felt pushed to make a quick decision
- 9% were told that the adviser knew of loopholes to access higher levels of tax-free cash
- The average potential likelihood of a scam consistently remained at around 25%.
The new financial selling rules will hopefully reduce the risk of people falling victim to investment scams. However, while the news that the UK is to ban all cold calls selling financial products is undoubtedly welcome, people cannot assume they are safe.
Ben Rees, the Technical Director of our Investment Fraud & Mis-selling group, has long argued for a better government response to pension scams and mis-selling. Commenting on the ban he said: “There is no doubt that pension scammers have proven to be adept at seizing opportunities and overcoming barriers. They frequently stay ahead by modifying their strategies and methods of approaching individuals.
“While the ban is welcome, it is one part of a much larger strategy needed to tackle investment fraud and mis-selling. People must remain vigilant to protect against scammers, and there must also be adequate channels of redress for those who fall victim to such intelligent criminals”.
Working to help victims of pension scams and mis-selling
Investigating and pursuing claims in the UK and beyond, if you have lost money due to fraudulent or negligent investment advice, contact us in confidence to find out how we can help.
Our solicitors have even won cases where victims had been told that there was little to no chance of compensation. If you were advised by a financial adviser who was regulated in the UK, this increases the chances of us making a successful claim on your behalf.