Pension Scams Are on the Rise— Here’s How to Stay Safe

Pension scams are becoming increasingly common, with fraudsters using sophisticated tactics to deceive retirees and steal their hard-earned savings. Below are some common scams and tips on how you can protect yourself and your retirement savings.

Common Types of Pension Scams

• Free Pension Reviews: Scammers offer free reviews to gather personal information, posing as legitimate financial advisors.
• Pension Liberation: Fraudsters promise early access to MPERS pension funds, leading to tax penalties and loss of benefits, which is against MPERS rules.
• Phishing Scams: Scammers call, send emails, or messages pretending to be from financial institutions, asking for personal information or login details. Always verify the source.
• Fraudulent Websites: Fake websites mimic official ones to steal personal information. Ensure you are on official sites before entering any details. Do not click links in suspicious emails that take you to a website.

Warning Signs to Watch Out For

• Unsolicited Contact: Be wary of unexpected calls, emails, or messages about your pension.
• High-Pressure Tactics: Scammers often create a sense of urgency, pressuring you to make quick decisions.
• Too Good to Be True: Promises of guaranteed high returns with little or no risk are red flags.
• Requests for Personal Information: Legitimate companies will not ask for sensitive information out of the blue.

How to Protect Yourself

1. Verify the Source: Always check the credentials of the person or company contacting you. Use the US Securities and Exchange Commission (SEC) PAUSE program to verify their legitimacy. The PAUSE program lists entities falsely claiming to be registered, licensed, and/or located in the United States in their solicitation of investors.
2. Be Skeptical of Offers: If an offer sounds too good to be true, it probably is. Do your research and consult with a trusted financial advisor.
3. Report Suspicious Activity: If you suspect you’ve been targeted by a scam, report it to the relevant authorities immediately.
4. Stay Informed: Stay current with the latest scam tactics and prevention tips. Knowledge is your best defense.

You can protect your retirement savings from scammers by staying vigilant and informed. Remember, if something doesn’t feel right, it’s always better to pause and seek advice before taking any action.