The long-awaited ban on cold-calling pension scheme holders has come into effect, making it illegal to spontaneously ring people about their schemes. The measure has been introduced in a bid to curb pension fraud, as cold-calling is one of the most common means by which scammers contact people.
Research by the Money Advice Service has indicated that as many as eight scam calls take place every second, adding up to 250 million a year. According to the Financial Conduct Authority, the average scam saw £91,000 being stolen. However, from now on any company cold-calling people can be fined up to £500,000.
Commenting on the new law, Economic Secretary to the Treasury John Glen said, "Pension scammers are the lowest of the low. They rob savers of their hard-earned retirement and devastate lives. We know that cold-calling is the pension scammers’ main tactic, which is why we’ve made them illegal." He added that anyone who has received an unsolicited call should contact the Information Commissioner’s Office with all the information they can gather.