A pension liberation campaign group has revealed the most common phrases used by scammers as an increasing number of people have fallen for the scams since the April freedoms.
The top three phrases are ‘legal loophole', ‘sophisticated investor' and ‘free', according to ACA (Ark Class Action) Pension Life, a nationwide campaign that represents members of 13 dodgy schemes with total losses over £2bn.
ACA chairman Angela Brooks said it was with "depressing inevitability" that more and more people have fallen victim to scams since the introduction of the pension freedoms in April last year.
She said: "The majority of those who are duped by the liberation scammers lose their entire lifetime savings and then face mountainous debts plus tax demands of 55% from HM Revenue and Customs," she said.
"The scammers are constantly changing their tactics. However, according to our members, there are three key phrases that should immediately ring alarm bells if you are approached by a pension liberation firm."
Last month, the campaign urged the government to set up an independent, specialist task force to tackle the problem with a joined-up approach. It wants HMRC and The Pensions Regulator to stop registering occupational schemes without due diligence, and has called for the Financial Conduct Authority to look at the weakness of its regulations.
Brooks added: "A failure to do so will inevitably mean more lives will be ruined by pension liberation scammers. In addition, there is an associated cost to the government of not tackling this, as those left without financial means will be reliant upon the already overstretched welfare system for many years to come."
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