Scamwatch: over 55s fraud risk

Stay one step ahead of the fraudsters with our series of articles giving you the lowdown on the scams they use to trick people out of their hard-earned cash - and how to avoid being taken in by them.

This week, we focus on the scams most commonly used to target older Britons: telephone fraud and bogus pension schemes.

How does it work?
One in five over-55s believe they have been victims of attempted fraud in the last 12 months, according to research from high street bank Santander.

The number of people falling for scams is also high. Telephone banking scam losses shot up by 95% year-on-year in the first six months of 2015, while many retirement savers have been taken in by wave of scams designed to take advantage of legislation freeing up the pensions regime.

Most telephone banking scams involve fraudsters pretending to be from a bank or building society fraud team, or from the police, and claiming to be calling about a problem with your account.

The aim of the scam, known as "vishing" fraud, is generally either to get hold of credit card or bank account details or to persuade recipient to transfer funds, supposedly to protect themselves from fraud.

Most pension scams, meanwhile, involve people being contacted by a company or individual offering them a free pension review, an investment opportunity or a way to pay less tax.

How can I avoid being caught out?
It is vital to be aware of common types of fraud and how to spot them.

That's why it is worrying that more than a third of the over 55s who took part in the Santander research admitted to having no knowledge of how any of the most common types of scams work.

Karen Tyler, head of fraud at Santander, said: 'Scams against individuals can be devastating, it is therefore so important that people are aware of the different types of scams and take steps to protect themselves."

Santander's top tips for avoiding being caught out by fraudsters include never giving out security details or transferring funds on the basis of a phone call.

If you receive a call from someone asking you to do either, the best thing to do is to hang up immediately.

When it comes to pension fraud, look out for schemes that seem too good to be true, especially if they are offered by a company that cold calls you or sends you an unsolicited letter or email.

I've been defrauded. What should I do?
If you are - or you think you might have been - taken in by a "vishing" scam, it is vital to contact your bank and any card providers so that they can secure your accounts as quickly as possible.

If you think you have fallen victim to pension fraud, meanwhile, call The Pensions Advisory Service on 0300 123 1047.

You can also call Action Fraud on 0300 123 2040, or the police on 101, to report fraud of any kind.