PPI claims companies are selling the data they have collected on people to pension scammers, it's been claimed.
Claim management companies are selling data to pension scammers, according to The Pensions Advisory Service (TPAS).
Michelle Cracknell, chief executive of TPAS, says it has received a number of calls from people who have been in contact with firms that offer to claim Payment Protection Insurance (PPI) compensation and then have been cold called by pension scammers.
“We have a number of those examples where this cross-selling situation is happening,” Cracknell said in a speech last week.
How is this happening?
Companies often make money from selling data to other firms.
When you are filling out forms if you don’t tick or untick the box, to say you don’t want your details shared with third parties then businesses are allowed to sell your information on. Other firms then use that data to try and sell you their products.
But, news that legitimate firms are selling that information to scammers adds fuel to the argument that customers need to be better informed about how their data will be used and stronger legislation needs to be put in place to protect people’s data.
Cold call ban won't help
The news comes as many pension experts warn that the Government’s plan to ban cold calling will do little to stop scammers.
The Government announced plans for a ban on cold calls, emails and texts designed to scam people out of their pensions back in August, but a date for its introduction has yet to be revealed.
“I totally support the ban on cold calling, but what is most important is to build it with a very big awareness campaign,” says Cracknell.
“Because the pickings are far too rich for these scammers to stop. People will not be safe with just the cold calling ban.”
It is estimated that eight people are cold called every second in the UK – that’s 250 million calls per year. Given that your pension is probably the biggest pot of cash you have scammers are increasingly targeting them with an estimated £43 million taken in pension scams since April 2014, according to Government figures.
Scammers managed to grab £5 million from people’s pension pots in just the first five months of 2017.
Victims of pension scams lose an average of almost £15,000.
How to keep safe
If you receive a cold call promising to help you access your pension early, or move it into a more profitable investment hang up.
In fact, to be safe you should hang up on anyone who calls you out of the blue to discuss your pension.
If they say they are from your pension provider then hang up, find your paperwork and call the number on there to find out if it was a genuine call.
If you think you’ve been the victim of a scam call Action Fraud on 0300 123 2040.
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